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.
"Ooooo, kinky!"
It has been a wild day for GME.
Pre market high was $496
Regular market low was $112
Regular market high was $483
Currently trading at $265-—down $82
As someone pointed out last night, the stolen election introduced law of the jungle. Now we all get to play.
Oops. Guess its been a hectic 13 years for me.
GME halted again.
amc getting it’s butt kicked
That's something they should have thought about before setting these markets up in the first place. And I would suggest that chaos under the existing regulations is better than changing the regulations to rig the results in favor of the big-time money people.
There's something deeply satisfying about reading through the various message boards yesterday as this fiasco unfolded. One guy apparently made enough money in a few hours to pay off his entire $43,000 student loan balance in one shot.
The best quote of the day: "Tell the Wolf of Wall Street that the Pigeon of San Francisco is coming to eat his lunch."
Neither is the looting short selling hedge funds. It’s beautiful watching them get annihilated.
The hedge funds should just take the “loss” and target another stock for shorting. They shouldn’t ask for more regulation of stock trading.
Also, a simple regulation that requires traders to take possession of shares (physically or electronically) would go a long way to minimize this type of idiocy.
Gold and Silver now
https://www.zerohedge.com/markets/reddit-rebellion-about-descend-precious-metals-market
Have you seen a single story of this happening to anyone?
I never understood why shortselling is legal, but have been told there is some market friendly reason for it.
If someone in Philadelphia or Atlanta can "vote" by mail without providing a single shred of evidence that he is legally eligible to vote, then I can buy and sell securities online however I damn well please.
Some of them are getting killed though. GME went to 520 pre-market and just hit 120 (!) an hour ago. I hope these kids didn't trade with margin.
I had my fun but got out fast:
AMC
Bought 5.07. Sold 20.20, 24.91 (now 9.59)
KOSS
Bought 12, 14.50. Sold 36, 50.25 (went to 140, now 37)
I read a lot of the contracts for the hedgers ends tomorrow for GME so they are going to fight like hell to depress the price.
Except that they didn't steal the stocks, they bought them fair and square.
It's more like they Cloward-Pivened the stock. They bought them so fast that they overwhelmed the system and jacked up the price (due to demand) too fast for the hedge fund managers to respond.
-PJ
DOGE (literally Dog Coin!) was also fun this morning. Bought $0.01477, sold $0.02401, insane quick profit, but stupid Robinhood could not put through my sales at higher prices.
They claim they make poorly run companies show better discipline etc. That they are like predators only going after the sick and weak.
But they forget to point out, when they short, they call their biddies at the IRS, FBI, SEC, at the WSJ and NYT, etc etc. They make accusations of product problems, poor management, accuse various illegalities, trying to get investigations started, etc.
They bet the stock will go down, then use politics to drive it down.
See also, “Mitt Romney”.
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