Posted on 01/28/2021 2:03:25 PM PST by libstripper
Wall Street giants are calling foul after having been beaten at their own game by a bunch of guys on the internet. It's hard not to cheer.
Sometimes heroism has a name, and sometimes — well, at least once — that name is u/ronoron.
In recent weeks, users of a Reddit message board called r/WallStreetBets decided that they would like to do something they'd tried to do often in the past: mess with a big hedge fund trying to short a public company. In this case, they wanted to mess with the hedge fund attacking GameStop, the debt-mired retail chain that buys back video games from consumers and sells the used copies alongside new and used games, systems and controllers.
(Excerpt) Read more at nbcnews.com ...
Based on the recent Robinhood action, it looks like the Empire just struck back.
Yup—this is gonna go on for decades...
Wall Street will wish they never stole this election for Bidet and the Democrats.
The lesson was learned—winners play dirty.
Are the Sam Thielman Redditors a particularly nasty group of Redditors?
How did they get their name?
The house always wins. Grrr.
Notice how public officials are flailing wildly after this one incident in one stock in one market.
Now imagine a thousand different kinds of events exposing thousands of different corrupt institutions...
That is the next move—hand on tight, folks—gonna be a _wild_ ride.
Chaos theory is our friend.
Action and reaction.
Action and reaction.
Faster and faster and faster....
This is just the beginning.
The entire stock market is "completely decoupled from any kind of economic reality."
As is Congress.
Turn the machines back on!
The left are in the process of tearing themselves apart. Remove wool from eyes; see naked emperors.
Accelerationism? Depends who comes out on top.
Meet Roaring Kitty-the stock picking wizard who
sparked buying frenzy by tipping GameStop shares on Reddit
-
https://www.dailymail.co.uk/news/article-9198589/YouTuber-Roaring-Kitty-disrupted-Wall-Street-Boston-suburban-dad.html
-
Hedge funds will make much of their money back as they short the stocks and the stocks fall from the inflated bubble price back to reality.
I’m sure any hedge fund managers that lose everything can just learn to build solar panels.
Day traders are bottom feeders. Period.
They aren’t capitalists. They don’t put capital into a company. They manipulate the day’s events and seek to come out ahead before the market closes and the bills come due.
And this is not a criticism of the Redditors. It is directed at the people who do this every single day.
I have seen reports that Melvin Capital has NOT closed out its shorts. It hasn’t been able to. That’s why Citadel, and possibly, Fed.gov put pressure on Robinhood and others to stop GME trading.
With their short position still on, if GME rises further, Melvin could blow gaping holes in many more hedge-funds and their backers’ wealth.
Just like the election of Donald Trump in 2016, average people have forced the deep-state to reveal their corruption.
"I'm going to Disneyland!"
The system has been gamed forever. Patrick Byrne was all over this 2 decades ago, called it “Deep Capture”.
In a nutshell there is a political science theory (I’d say fact) that regulators are ‘captured’ by those they regulate. This is for many reasons. It’s because the people they deal with every day (the regulated) get cozy, and because they take their orders from the politicians who take their orders from the donors who are being regulated, and because the little guy has virtually no voice unless s/he is part of a very large mob.
Patrick took it one step further and called it Deep Capture. He said it’s beyond just regulators being captured by the regulated - the entire system is captured by a small handful of special interests. The GameStop (and there are a dozen or more other stocks in the same situation) scam is just a peek into the problem. The big bankers lost $80 billion this month, on paper at least, from their short positions. So surprise surprise surprise, the brokerages stopped the small investors from buying the shares, thus creating a flood of supply and cratering the stocks.
I do agree, the stock (and most of the market) is decoupled from reality. It’s not just GME and AMC. We’re in the middle of a pandemic, record unemployment, huge collapse in GDP, and the stock market hits new highs. How is this possible? Helicopter money.
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.