Posted on 01/28/2021 8:54:41 AM PST by SeekAndFind
A subreddit, r/WallStreetBets, has caused mass hysteria in the financial markets as many hedge funds and Wall Street elites have lost billions as a result of their GameStop play. Was what they did “market manipulation?” Absolutely. Is that inherently wrong or even illegal. Absolutely not.
Briefly, members of the subreddit noticed that most of the active shares for GameStop were in a short position, meaning hedge funds were betting that the stock price would drop dramatically, making them a lot of money. So, the Redditors put out the word to buy Gamestop stocks and drive the price up. It worked. One can argue it worked better than any other price pumping play in history that wasn’t attached to actual news about a company.
Politicians, trading companies, and Wall Street analysts have called for a moratorium on trades of the stocks until market volatility subsides. In other words, they’re trying to buy time for those who have shorted and even continue to short the stock to get their ducks in order to mitigate damage. It’s a play that works against the little guy in favor of the big guys.
JD talked about this in-depth on his latest episode of Conservative News Briefs (in its triumphant return after months of being offline). For those who want a shorter breakdown, here’s a brief explainer video from Anything Goes (explicit language):
They’re working against the short squeeze to protect assets, oftentimes their own. THIS is the only thing that’s bad about all of this. Is shorting stocks bad? No. It’s part of the gamble, and anyone who says the stock market isn’t legalized gambling is delusional. Is pumping the stock the way the subreddit did bad? No. Again, it’s all a gamble.
Hedge fund managers are claiming they don’t like volatility. The truth is they don’t like volatility they don’t control. This action by the masses driven by the “little guys” isn’t in the hedge fund managers’ playbook, which is why they’re trying to quash it.
What triggered the buying of Gamestop was people on Reddit noticing that short sellers had sold 140% of the actual amount of Gamestop stock. The hedge funds not only sold stock they didn't have (Naked Short Selling, which is illegal, at least when mere mortals do it), but 40% more than exists.
And once this becomes painfully obvious to the general public, too many uncomfortable questions are going to be asked.
Reminds me of the movie Trading Places.At the end the stock market guy says “Margin call gentleman” One of the Duke brothers says “You know perfectly well we don’t have $350,000,000 in cash” and they lose everything.Love seeing these wall street billionaires take one across the chops.
amen to that!
Knew it knew it would come of this....
TRADING COLLAR garbage.
Totally rigged again.
If I understand correctly, if the Reddit buyers all stick together and refuse to sell, the hedge fund guys are screwed as they need to return all those shares they "borrowed" or face a margin call - which they evidently cannot afford.
You mean shorting?
Hedge fund tries to off Gamestop by borrowing 140% of GME shares and driving down the price so that they can rebuy it again.
People who like GME think this sux, like my kid and me, so they bid it up.
Hedge funds don’t have the stock and have to buy the stock to cover. Right now, they are LITERALLY on their knees begging the very company they tried to scuttle for an opportunity to buy shares at something less than $350.
I say let the shorts burn. Sink them. One fund was stupid enough to lend another firm money to keep going.
And like clockwork, the folks rigging the game are doing what they can to make the field uneven again for the big players.
I’m sure the Deep State uses these Hedge Funds as a means to take out any company they want to.
They won’t give that up.
anyone remember the silver runnup and collapse when Hunt brothers tried to corner the silver market in 1980
https://en.wikipedia.org/wiki/Silver_Thursday
Free market hanky pinky, what's the problem?
Time for the Wallstreet brand of popcorn to hit the market 😀
thing is, its not just Reddit guys anymore..its spreading like wild fire, and some big hitters are throwing in... they dont know how to stop it...over seas markets too....
-PJ
this is gettin good..Citadel was getting torched so bad, they “ordered” Robinhood to halt buying...flat our said “we can fight lawsuits better than fighting this...UNREAL!!!...JUST WOW..
This ,plus poverty, is why I don’t mess with stocks.😝
While no one complains about Tesla stock going up right before Democrats essentially mandating electric cars ...
I like short shorts; the purple people eater.😏
GME can clear it. Issue more stock at the shorted price tomorrow.
I suspect there are a lot of calls going on demanding they do just that
Steve Cohen, owner of the NY Mets is going after Dave Portnoy online right now...Portnoy accused Cohen of being behind all this...Cohen is a big time hedgie...THIS IS GETTIN GOOD!!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.