Posted on 01/29/2021 4:41:43 AM PST by blam
Rush Limbaugh on Thursday pointed to GameStop stock as the latest example of Washington elitists coming after ordinary Americans.
Shares of GameStop, a video game retailer, have soared in recent weeks, going from $17.08 to $347.51 at Tuesday's close.
Brokerage platforms such as Robinhood and TD Ameritrade restricted trading on Wednesday and Thursday following an unexpected surge in trading volume of various stocks. Limbaugh said the move was made to protect hedge fund billionaires, per Fox News.
"Folks, it's not just political now. The elites are bent out of shape that a bunch of average, ordinary users have figured out how to make themselves billionaires," Limbaugh said. "I’ve been studying it all morning and the best thing I can tell you is … whatever you think is going on in politics, Washington establishment, the Deep State, what have you, it's the same thing in finance."
According to Limbaugh, there are "those who are allowed to make a lot of money" and those who aren't.
"If you figure out how to make a lot of money, and if you're like Donald Trump and you figure out how to get elected, you figure out how to beat the Deep State, they're gonna come and they're gonna wipe you out," he said. "They're gonna destroy you, and that's what's happening with GameStop."
The radio host explained that users of the social website Reddit figured out how to "game the system." They joined together to turn the stock market in to a "profit-making device for themselves."
Unfortunately for the "ordinary" stock buyers and sellers, there were consequences.
"In the process they are harming the intended winners in this financial circumstance and that would be the hedge funds out there," he said.
(snip)
(Excerpt) Read more at newsmax.com ...
It depends on what their total short position is. They are exposed to unlimited downside exposure. When the month ends, whatever the GME close is, they are on the hook for 140% of the stock (which is both absurd and true).
If the price is anywhere close to $300, then they are looking at around $20B based on a float of 45M shares (add 40 percent on to that).
Government Sachs is worried and talking systemic risk today, so . . .
AFAIK, they don't have one. Have you seen anything on their positions?
When the month ends, whatever the GME close is, they are on the hook for 140% of the stock (which is both absurd and true).
Why would Citadel, or anyone, be on the hook for 140% of the stock?
Because that’s what Citadel did. They shorted GME. That’s what this is all about.
Are you confusing Citadel with Citron and Melvin?
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.