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GameStop Is Rage Against the Financial Machine
91–100 of 1001 posts
Re: GameStop Is Rage Against the Financial Machine
#92Earlier quoted context omitted.
Gotta hit discord and telegram too Telegram has threads now on announcement channels that are unlinked from discussion channels
Discord and telegram are big, but there's no way they're as big as WSB. I can just go to reddit.com/r/wallstreetbets and watch the show, I don't even know how to begin finding the same thing on discord. And to put into focus how many people are involved here: the GME discussion threads go to tens of thousands of replies within MINUTES of being posted.
r/wallstreetbets has an official Discord, I think that's probably what parent is referencing. It's linked in their sidebar with a giant Discord logo, not hard to find
Re: GameStop Is Rage Against the Financial Machine
#93So, can someone explain rationally how options/derivatives are actually useful to the economy, rather than a market manipulation and gambling mechanism? In the traditional, elementary school understanding of stock, people buy into a company because they want part ownership, and the stock goes up as the company does well and has solid financial strength. Derivatives seem to be an unnecessary accelerator.
I'm generally sympathetic to the idea that financial derivatives are a great evil, and a huge part of what feels "broken" about the current system.
However, consider futures, which are very similar to options. Futures were, as I understand it, popularized in Chicago as a way for farmers to be able to get money for their crop right now, at a fixed price. In this way, they could pass the risk -- and a little bit of the profit -- off to people with more capital, who were better able to weather all possible outcomes.
Re: GameStop Is Rage Against the Financial Machine
#94The duplicity of the media here is funny! Melvin has not closed out of its short position.
Is there any way for us to know for sure, other than them announcing their positions, or losses?
To know for sure? Not really unless they themselves announce it. Right now the announcement comes from a third party CNBC reporter, so it's not official and there's plenty of room to claim a misunderstanding.
But there are ways to gain some insight based on how hard GME is to borrow and the shorting interest, and that hasn't changed much from yesterday.
If Melvin did manage to get out of their short, they handed that short to another party almost share for share, or they found a way to hedge their position. At any rate, GME remains the most shorted stock on the market, which means another short squeeze is possible.
This Friday when options expire is going to be an absolute circus.
Re: GameStop Is Rage Against the Financial Machine
#95Why doesn’t GME issue some shares at these prices and pay off all its debt and add cash to the balance sheet?
Matt Levine is speculating that they're doing exactly that.
Re: GameStop Is Rage Against the Financial Machine
#96I am loving every minute of this. The "professionals" gamble on the market all the time, front run, high frequency trade, and relentless tactics to get rich at the expense of the "retail" investors. Now they are upset that apps like Robinhood has provided unprecedented access to the markets. Their exclusive access to insane gambling nonsense is being torn down in real time. If Wall St can gamble and cause a global fi…
I coudn't agree more! It's really fun to watch from an external perspective.
Re: GameStop Is Rage Against the Financial Machine
#97Bloomberg seems determined to make people feel bad for the short sellers. No. I will not. They made a gamble and it costs them billions. Good. No one should be gambling with billions on the line, for any reason.
Re: GameStop Is Rage Against the Financial Machine
#98If 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…
Great explanation. IMO the GameStop phenomenon is the result of the combination of democratization of trading through software (Robinhood no fee trading, doing it on your cellphone) + social media enabled mass scale online community building (around some previously fringe niche). Any area that is subject to this kind of combination of change could face similar situation where the old institutions guarding the area would face increasing challenge from grass root efforts ("retards/autistics" as in wsb's lingo).
Re: GameStop Is Rage Against the Financial Machine
#99I am loving every minute of this. The "professionals" gamble on the market all the time, front run, high frequency trade, and relentless tactics to get rich at the expense of the "retail" investors. Now they are upset that apps like Robinhood has provided unprecedented access to the markets. Their exclusive access to insane gambling nonsense is being torn down in real time. If Wall St can gamble and cause a global fi…
This kind of market folly also has an effect on long-term investments, e.g. retirement funds. What is there to love? I hate that unshowered basement-dwellers are coordinating to screw around with the market and potentially my retirement money. Get an honest job, guys.
Re: GameStop Is Rage Against the Financial Machine
#100Earlier quoted context omitted.
Quantum Market Hypothesis In one dimension, the new GME management (which did occur) does a secondary market offering directly into liquidity, recapitalizing themselves which changes all the fundamentals. This wouldnt be known information because the expectation of no liquidity, but now that there is liquidity it creates new information
The only way this could get stupider is if GME took their impressive new warchest and bought/merged with Valve, pulling a unicorn into the stock market. At that point, reddit would have memed a brick and mortar retailer into a SPAC.
Apes together strong.