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GameStop Is Rage Against the Financial Machine

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Re: GameStop Is Rage Against the Financial Machine

#51

Post by wyxuan »

colllectorof wrote: post #37

If you want an entertaining explanation of what's going on with GameStop's stock, I highly recommend these videos from Louis Rossmann: https://lbry.tv/@rossmanngroup:a/wallstreetbets-vs-citron-re... https://lbry.tv/@rossmanngroup:a/why-mainstream-media-s-slan... https://lbry.tv/@rossmanngroup:a/gamestop-shorts-lose-billio... https://lbry.tv/@rossmanngroup:a/gamestop-shorts-are-full-of... (That's how I learned about t…

I lost my respect for Rossman after he uploaded a video cursing out short sellers after $AGRX sunk after getting approved. Bio stocks almost always sink after PDUFAs, but he was just raging after what he thought was market manipulation.

Re: GameStop Is Rage Against the Financial Machine

#52

Post by dannyw »

VikingCoder wrote: post #38
tempsy wrote: post #30

Earlier quoted context omitted.

the reality is all of their major shorts are being squeezed not just Gamestop, but I agree I think their CNBC interview was just a distraction and doubt they could’ve closed out their entire short position overnight.

Dumb question - could the shorts actually negotiate with Gamestop directly to get them to issue new stocks? Wouldn't that be a win-win (and the retail loses, because a) the stock is diluted, and b) no one would be "forced" to buy from them)

Sounds like a great way for management to get into a fiduciary duty lawsuit.

Re: GameStop Is Rage Against the Financial Machine

#53

Post by dannyw »

xiphias2 wrote: post #46
dannyw wrote: post #33

Earlier quoted context omitted.

You underestimate just how much concentrated retail volume is. I have had more than ten people ask me how to buy GME. Its on the front page of everything. Bitcoin’s nearly $1T market cap is more or less all retail. Plenty of WSB posts with multi million positions. Disclosure: I long GME.

Also with out if money call options you can have 5x leverage quite easily with limited downside, and that's what retail is doing on masse. It's more fun than playing lottery for sure.

Also with half of the market being passive, every $1 of active money is matched by $1 of passive money.

Re: GameStop Is Rage Against the Financial Machine

#54

Post by moolcool »

ping_pong wrote: post #4

It's really not. Because eventually retail is going to get destroyed. Yes, some hedge funds have lost their shirts, but those are the first ones who were in the short before the squeeze. The hedge funds and more importantly day trading shops making money right now are the ones who saw the activity and are goosing the stock price right now. I don't know if people realize that there are thousands of day trading shops w…

Every thread about WSB has comments like this, pretending that tons of stupid kids haven't made fortunes rolling the dice on meme stocks. You ignore or misunderstand what's going on at your own peril.

Re: GameStop Is Rage Against the Financial Machine

#55

Post by bern4444 »

ipnon wrote: post #39

Maybe Robinhood's mission of democratizing finance is succeeding. The locus of power is being sucked out of Wall Street into a lumbering giant in the hills. My question is: how isn't this the most useful outcome for the most people?

It absolutely is. This is competition forcing entrenched companies to adapt and compete. Funds will have to compete by offering new financial products/models/offerings/services etc.

The public now has access to information and means of trading at a level that was never before possible.

All the funds must be crazy upset since their once cornerd industry, gated by terminology, tools, information and institutional knowledge is suddenly far less valuable.

This at its core is exactly how a market should work. People made stupid trades, and a bunch of others figured it out and called them out. Perfect self regulating behavior but only possible due to the massive expansion of access to information and tooling by individuals.

What WSB and similar communities do is no different than a fund manager going on the news and stating their recent positions and reasoning.

Re: GameStop Is Rage Against the Financial Machine

#56

Post by yellowapple »

chrisseaton wrote: post #25
AdmiralAsshat wrote: post #20

> These points doubtless make me appear to be a complacent shill for the financial industry, talking down to the rubes. For the record, I’m still angry about the way workers were ripped off in Britain more than three decades ago, and about the way the little guy ended up bearing the brunt for the financial implosions of 2000 and 2008. But it looks horribly to me as though the same thing is going to happen again — and…

Aren't almost all companies like this an integral part of almost everyone's pensions? Through your pension you're probably an investor in tens of thousands of companies and funds.

Right, which means that a single company having a weird day probably won't have much of a noticeable impact on those pensions at all.

Re: GameStop Is Rage Against the Financial Machine

#57

Post by blhack »

Okay a serious question: at what point does it make sense for these hedge fund guys to just purchase reddit and shut it down?

To be clear: I don't think that would work, but I think we're at the point where stuff like that is going to be tried. These guys are losing BILLIONS of dollars. Billions. Can they spend $1B to prevent the loss of $2B? (Is reddit worth more than $1B?)

Other stuff I won't be surprised if we see:

* Massive astroturf campaigns (the WSB mods are claiming that this is already happening.

* DDOS attacks on reddit

* Attacks against the mods of WSB

* "Institutional" attacks like SEC involvement

It's just sortof crazy to think what it looks like when there is this much money on the line. Everything goes out the window.

Re: GameStop Is Rage Against the Financial Machine

#58

Post by xiphias2 »

ping_pong wrote: post #26
tempsy wrote: post #19

Earlier quoted context omitted.

nah you’re underestimating their power to move names in small cap stocks with high short interest.

That's absurd. People in WSB probably bought low and haven't sold at all or sold on the way up. Look at the volume. Who is shorting at these prices with this kind of activity? Who has the money to keep buying at $350 to propel the stock to $400? Definitely not WSB. I know plenty of people dipping their toes in and buying 10 or 20 shares for fun right now. But there's 55M shares trading at all time highs. That's not r…

The aggressiveness of the short squeeze is unprecedented and can only be executed with aggressive cheap out of money call options. That looks like gamers to me :)

Re: GameStop Is Rage Against the Financial Machine

#59

Post by Apocryphon »

chrisseaton wrote: post #25
AdmiralAsshat wrote: post #20

> These points doubtless make me appear to be a complacent shill for the financial industry, talking down to the rubes. For the record, I’m still angry about the way workers were ripped off in Britain more than three decades ago, and about the way the little guy ended up bearing the brunt for the financial implosions of 2000 and 2008. But it looks horribly to me as though the same thing is going to happen again — and…

Aren't almost all companies like this an integral part of almost everyone's pensions? Through your pension you're probably an investor in tens of thousands of companies and funds.

You’re not wrong, but are there pension funds that include revenue made from shorting stocks? Seems like a reckless practice if there are.

Re: GameStop Is Rage Against the Financial Machine

#60

Post by vmception »

blhack wrote: post #57

Okay a serious question: at what point does it make sense for these hedge fund guys to just purchase reddit and shut it down? To be clear: I don't think that would work, but I think we're at the point where stuff like that is going to be tried. These guys are losing BILLIONS of dollars. Billions. Can they spend $1B to prevent the loss of $2B? (Is reddit worth more than $1B?) Other stuff I won't be surprised if we see…

Gotta hit discord and telegram too

Telegram has threads now on announcement channels that are unlinked from discussion channels

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