INTERESTING ARTICLE HERE:
JANUARY 30, 20216:16 AMUPDATED 21 HOURS AGO
Analysis: A tulip by another name? ‘Gamestonk’ and the case for investor caution
By David Randall
8 MIN READ
NEW YORK (Reuters) - It sounds like the start of a parable: Investors stuck inside during a pandemic begin to bid up an asset until its price becomes untethered to reality. The value soars until one day the market runs out of buyers and freezes, causing prices to plummet and some unlucky few to lose fortunes more than ten times their annual incomes in the span of a few hours.
The date: February 3, 1636. On that day, the infamous Dutch tulip bubble burst during an outbreak of the bubonic plague, illustrating that asset prices can plummet just as quickly as they soar, leaving only pain behind.
Now, almost exactly 385 years and another pandemic later, Wall Street waits to see how long it will take for history to repeat itself. ...snip...
https://www.reuters.com/article/retail-trading-bubbles-idUSL1N2K42M3
I am wondering if it’s really possible for those little guys to actually do this without some other behind the scenes stuff going on. But when the market eventually crashes, they will make a good scapegoat won’t they??? Gotta think about it-nothing is as it seems these days.
Lots of behind the scenes going on. The main issue here is that the little guys aren’t selling. Because the stock is shorted over 100% and the Call contracts were due Friday - the Hedges are having to get inventive. They’ve been trading between themselves on Thur/Fri in order to try to bid the price down, but they don’t have enough float to be able to force the issue and the little Guys now have some big guys jumping in like sharks that smell blood. Every time there is a dip the non-hedges are jumping in with both feet to buy up any available shares.
Eventually it has to unwind.
I’ve also been hearing some talk about how hedges have a way to create phantom stocks. this discussion is pertinent:
Key points are: For you to follow this argument, you need to go read the white paper “Counterfeiting Stock 2.0” so you understand how the hedge funds can create fake stock out of thin air and disguise it so it looks like real shares. They use these fake shares in short attacks to drive the price of a company down until they put them into bankruptcy. This practice seems to be widespread among hedge funds that go short. There is even a term for it, “strategic fails–to–deliver.” Counterfeiting shares is extremely illegal (similar level to counterfeiting money) but it’s very difficult to prove and even getting the court to approve subpoenas because of the way the financial industry has stacked the deck against investigations.
The institutional entities have been pulling a giant skimming operation since people realized that computational speed was such that you could profit off of merely being hundreds of feet closer to the exchanges.
To recap/catch up on the subject I highly recommend going over Karl Denningers commentaries from back around the 08 wipeout and subsequent fallout. (Market-ticker.org).
He has a lot of asterisks in postings, just know that it is mainly from beating this drum to deaf ears for essentially 20 years. I consider him to be an expert at the highest level on this AND on the subject of the medical/industrial complex.
Suffice it to say at this time, especially if there is acceleration of these market activities, that this is quite possibly a significant component of what we are following here.