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.
There was no nitwitery envolved here. A bunch of wealthy and connected hedge funds got their taints handed to them by the underdogs, who outsmarted them. Technology has a way of leveling the playing field in the long run. Now hedge funds and investment banks no longer have a monopoly on market manipulation. Hedge funds are the new record labels.
Will this be some kind of law to just only professionals can do ‘shorts’? Whatever they write for a law....will just be openly challenged in court. The whole purpose of Wall Street....it was open from the littlest ‘nobody’ to the greediest billionaire.
Right. I’m not talking about the idiocy of bankrupting hedge funds. I’m talking about the idiocy of having people buy and sell securities that may not even be available for sale anyway. LOL.
The markets aren’t doing badly today (understatement). Well, any way, little players should not be allowed to indulge in the games big persons play like violins./s
Do you think drive-in windows made people more or less careful about what they eat? LOL.
RE: amc getting it’s butt kicked
There is absolutely NO REASON to own AMC. Nobody is going to movies or theaters any longer so any run-up in prices for a day or two already is a signal that some hanky panky is going on.
All power to the Redditors.
I think I agree with AOC on this. hahahahaha
The SEC has a revolving door with the companies they regulate—as do all major federal agencies.
Ban the revolving door—lifetime ban in either direction—and you can _begin_ to get a handle on this—but it would still take decades to have an impact.
The naked shorts are scumbags and fully deserve this if they don't escape.
So far it’s not a bad thing. But when the stock crumbles the winners will be losers.
guess Dave Portnoy has 1 milly locked in...he says he’d rather die than sell...lawsuits coming big time...
Margin Call Gentlemen.
These hedge funders manipulate the market all the time.
Sneaky leaks to the press to drive prices up or down.
Now Robinhood is manipulating trading by not allowing to buy GME.They get a lot of money from the hedges.>>> and shorting rules changed years ago to allow anyone to short the stock. In the old days you could only short the stock by actually borrowing someones stock. The short interest could never exceed the total shares outstanding. Now that rule doesn’t apply.
If Gamestop isn’t worth that much then what’s the point?
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