Posted on 01/28/2021 6:00:07 AM PST by Red Badger
Update: The Reddit subgroup WallStreetBets is back up this evening.
What an amazing story!
Reddit shut down its WallStreetBets subreddit page on Wednesday afternoon after rookie stock market investors in the general public joined together to purchase stock in targeted companies causing a major disruption in the stock market and resulting in several hedge funds to go bust.
Of course, Reddit blamed “racism” and “hate speech” for removing the community.
According to The Verge, Discord has banned the r/WallStreetBets server. Reddit’s WallStreetBets subreddit is the driver of an unprecedented rally of GameStop stock, and has received a great deal of attention in the press as the stock continues to soar.
NBC News attempted to explain the frenzy in the stock market surrounding WallStreetBets today.
Here’s a guide to understanding why, and what the frenzy means for the stock market.
Like many companies that are in rough shape, GameStop was the subject of what’s called short selling, in which professional investors borrow shares of stock to sell and then buy back at a later date, which lets them pocket profits if the stock price goes down. These are basically bets that the company will fail.
GameStop was one of the most shorted of all publicly traded companies. Other companies on that list include AMC Theatres, Bed Bath & Beyond and even the mostly defunct Blockbuster. Remember those names.
And then it became the source of a short squeeze.
Most of this is beyond my ability to understand, but there are other sites that say this is the little guy getting back at the hedge funds. Others disagree saying that it’s big guys getting back at each other, and, as always, it’s the little guys who will get screwed over.
In his day Robin Hood was a domestic terrorist.
;-)
When one hears/reads “racism, hate speech, white supremacy”, a number of conclusions can be reached.
1. The writer/speaker is uneducated.
2. The writer/speaker really thinks that they are intelligent, but we know the truth.
3. The writer/speaker has absolutely no argument whatsoever, but likes to pretend that they do.
4. The writer/speaker knows that in any true debate, they’d get their Obamahole handed to them.
I’m in season 4 of Mr. Robot. Life imitates art.
It’s up, I was just there. I opened a trading account but it can’t connect to my credit union, was going to but 5k of GME yesterday.
The problem here is that the losing hedge funds were unhedged. No stop losses in place if the trade went against them.
Some young people are _very_ clever, and they have quickly figured out that if the old people refuse to play fair, then young people don’t need to play fair either.
This is gonna turn into wack-a-mole, maybe for decades...
Sun Tzu—The Art of War—”Strike where and when they are weak.”
Many trading apps aren’t allowing to buy. Only closing.
Robinhood was the latest.
You are making my brain hurt. :-)
Mr. Robot was a bit un-nuanced.
Life is way more complicated....
but I give them credit for trying to explain the world of the future...
:: Of course, Reddit blamed “racism” and “hate speech” for removing the community. ::
Which effectively hid ALL evidence of “racism” and “hate speech”.
Remember folks, even though you may not like it, any form of bigotry is /protected/ under the first amendment.
Sad to say, but this is like a foreign language to me. I wish I understood it, but I don’t. Maybe some day it’ll make sense — like the day I finally understood “word problems” in arithmetic.
Most of these "kids" have nothing to lose and they say, "let it burn".
Robinhood has banned buying of all stocks that are being short squeezed. Not just AMC and GME, but EVERY ONE OF THEM - KOSS, CTRM, BB, every single one.
In a way, it’s a massive game of “chicken”.
How many times can you double down before you lose your nerve or run out of cash for the next bet?
Historically, Hedge Funds win that game.
Now, crowd sourcing has proved it can win.
Hedgies having been burned cannot play anymore without more infinitely deep pockets and nerve.
Quite interesting.
Dave Portnoy is having a melt down over this. Said several lawyers have contacted him about a class action suit
Good link—explains it well.
The point is that the system is so corrupt at all levels that it can be quickly undermined—and each flaw exposed.
Rinse and repeat—in thousands of different ways.
Everything is corrupt.
Everybody is lying.
Expose them all.
“Heads we win, Tails you lose”.
That’s a bit more explicit than a lot of the raping and pillaging that usually goes on on Wall Street.
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