GameStop Is Rage Against the Financial Machine • Hacker News Board

Re: GameStop Is Rage Against the Financial Machine

#111

Post by mdoms » Wed, Jan 27, 2021, 5:23 PM UTC

this_user wrote: post #87

cwhiz wrote: post #68

I 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 see no reason why "retail" traders can't fuck around on Robinhood and cause some meme stocks to explode. It's called 15USC78i "Manipulation of security prices" [1]. It is unlawful to transact just for the purpose of forcing others to transact. Going through a fund's 13F filings, and deliberately driving up the prices of put options they sold should fall squarely into that area. And there are more than enough post…

There's a pretty simple defense here. "I saw the posts on reddit and wanted to get in on the upward swing". Efficient markets at work. Unless you can tie real identities to the reddit posts there's not much to be done.

Re: GameStop Is Rage Against the Financial Machine

#112

Post by boringg » Wed, Jan 27, 2021, 5:23 PM UTC

this_user wrote: post #87

cwhiz wrote: post #68

I 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 see no reason why "retail" traders can't fuck around on Robinhood and cause some meme stocks to explode. It's called 15USC78i "Manipulation of security prices" [1]. It is unlawful to transact just for the purpose of forcing others to transact. Going through a fund's 13F filings, and deliberately driving up the prices of put options they sold should fall squarely into that area. And there are more than enough post…

I think that only works on co-ordinated activity. Everyone on their is so small and not working in co-ordinated way. There is considerable discussion in the thread about the legality of it.

Also - what do you think short sellers like Citron do all the time. Put out fake reports about companies to make money off their short positions.

The sentiment on the trade is eff those short sellers and their sketchy tactics.

Re: GameStop Is Rage Against the Financial Machine

#113

Post by Blackstone4 » Wed, Jan 27, 2021, 5:23 PM UTC

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…

Hedge funds and other investors have rules in place to limit what they can invest in which would probably rule out a purchase of Reddit.

Secondly, the Reddit crowd would move else where.

Thirdly, working in investments myself, hedge fund types dont even think like this. It is hard to explain how far off the mark you are...I know financial services can look like a black box....but what is happening is much more boring than you might think. All the drama is happening on Reddit...the SEC is worried about retail investors creating a bubble and losing money....hedge funds and traders just want to make money.....they may take a loss here and move on quickly to the next thing. Doing crazy sheeeeet like you suggested would have them potentially lose all of their investors money or be blacklisted....

Re: GameStop Is Rage Against the Financial Machine

#114

Post by 52-6F-62 » Wed, Jan 27, 2021, 5:23 PM UTC

cwhiz wrote: post #68

I 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…

> Make no mistake, the market is already a mockery, what's happening now is that the public is finding out.

Pretty sure that was about a century ago and resulted in the Great Depression.

I don't think the solution to the crock that has been going on is to "do it back". Setting one or two hedge funds back a year or so, or even to close completely, isn't going to do anything resembling justice.

It starts to look more and more like just more pigs rolling around in the mud together, if you ask me (saying nothing of the collateral damage along the way).

Re: GameStop Is Rage Against the Financial Machine

#115

Post by jameslars » Wed, Jan 27, 2021, 5:24 PM UTC

psim1 wrote: post #99

cwhiz wrote: post #68

I 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.

I have an honest job AND a position on GME. Thanks for your concern though.

Re: GameStop Is Rage Against the Financial Machine

#116

Post by IIAOPSW » Wed, Jan 27, 2021, 5:24 PM UTC

wyxuan wrote: post #51

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.

I was disapointed in some of his videos about Coronavirus and Cuomo's executive orders. But then I remembered that he is neither a stock trader nor an epidemiologist. His channel is fundamentally an opinion show. Its a good opinion show, but still an opinion show. When he starts giving opinions on things far outside his wheelhouse he becomes a more-rational-than-average lay person.

Re: GameStop Is Rage Against the Financial Machine

#117

Post by xorx » Wed, Jan 27, 2021, 5:24 PM UTC

cwhiz wrote: post #68

I 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…

Yes, but retail is going to get destroyed in the end.

The power elite always get what they want. Right now there appear to be curbs on GME and AMC buy orders for TD Ameritrade and Schwab customers.

If you have to pull strings with your drinking buddy from Dartmouth to blow up a bunch of propertyless zoomers in order to prevent a margin call on the account you've leveraged to buy your house in the Hamptons, then that's what you're going to do.

Re: GameStop Is Rage Against the Financial Machine

#118

Post by krok » Wed, Jan 27, 2021, 5:24 PM UTC

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…

> These points doubtless make me appear to be a complacent shill for the financial industry, talking down to the rubes

For context, in 2008 John Authers was a (very senior) Financial Times reporter on Wall Street. He became aware that there were queues of financial workers outside retail branches of banks in South Manhattan. These people had cash in various US banks, more than the insured deposit limit, and were withdrawing it and/or shifting it between accounts to protect themselves against the bankruptcy of major banks. They has a better idea than the newspaper-reading public of what was about to go down.

John decided that this wasn't worthy of being covered in the FT. He did however queue up himself to move his own money so it was protected.

You can judge for yourself whether that makes him likely to be a complacent shill for the financial industry, talking down to the rubes.

Re: GameStop Is Rage Against the Financial Machine

#119

Post by alfl » Wed, Jan 27, 2021, 5:24 PM UTC

shuntress wrote: post #104

One of main points I've seen from people angry about a perceived deliberate manipulation to reduce Gamestop's stock price is that this will directly impact retail workers in the form of job loss. Could anyone explain how this might happen? My naive assumption is that the relationship between a company and it's stock is (mostly) one-way. If a company cuts jobs, this along with all other signals from that company will…

Stock prices typically rise after layoffs because the perception is that the company is cutting underperformers that don't have the same marginal contribution as the remaining staff.

Generally, a declining stock price could have implications for debt covenants, compensation packages, and, requires selling more stock to finance the same level of capital expenditure.

Re: GameStop Is Rage Against the Financial Machine

#120

Post by koheripbal » Wed, Jan 27, 2021, 5:25 PM UTC

cwhiz wrote: post #68

I 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…

Front Running is illegal, and companies get busted and fined for doing that.

High Frequency trading is actually GOOD for retail investors because it reduces spreads and increases liquidity.