141–150 of 1001 posts
I'm looking forward to seeing what kind of new regulations we're going to be enjoying as a result. Some people's feelings and sense of superiority are truly hurt by this I expect and the SEC are probably hard at work trying to figure something out and to the extent that they're failing to do so, salivating at thought of new powers. All in the name of saving the undeserving from themselves of course.
Am I missing something in the Gamestop news that isn't "hedge fund gambles billions on naked shorts and loses"? That seems like a real blunder on their part. In other contexts we would just call this gambling, I think. Shorts have infinite liability, not hedging them is not something I can get behind.
Bloomberg 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.
There's a mantra among these people of "I just wanted to play video games, why couldn't you leave me alone?" The culture of a lot of redditors and internet trolls in general seems to be that they feel like they are the eternal punching bag of society. They were the punching bag in high school, they didn't get into a good school (or go to college at all), and now they're the punching bag of society as "incels" or "whi…
I'm not sure there's much of an overlap. Incels are a rather small group, and I think most wallstreetbets users are surprisingly... normal. You can't bet on stocks if you're poor. So you'll have lots of mid/late 20s educated guys with decent incomes. This to me really feels like a classic "for the lulz" (and some personal profit), avalanche-style event.
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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.
I don't think what they're doing violates the law[0], but they could easily subpoena Reddit and find out who the users are if they wanted to. [0]: too complicated to get into here, but basically my interpretation of the law is that you need to be making trades that you intend to cancel or revert immediately in order for it to apply to you, and what these traders are doing is instead speculating on the price going up…
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 believe you are far off the mark here. Retail investors are well within their rights to drive up a stock to what could be above fair market value....some may well lose money in doing so. The whole narrative around retail vs. hedge funds/wall street is naive to say the least...people in financial services are worried that retail investors may lose a lot of money here which may dent confidence in the market. The iron…
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…
I don't think you understand what's happening here. There's only so much volume available as a result of the short positions. WSB et al are putting in money on a long hold. As a result that drives up the price. Yeah gamma's are in for sure making money. There are some people who have made multiple millions. One individual sitting at $31M currently on a $50k investment. Some retail will lose, but wall street instituti…
Earlier quoted context omitted.
I don't think what they're doing violates the law[0], but they could easily subpoena Reddit and find out who the users are if they wanted to. [0]: too complicated to get into here, but basically my interpretation of the law is that you need to be making trades that you intend to cancel or revert immediately in order for it to apply to you, and what these traders are doing is instead speculating on the price going up…
How would Reddit know who those people are? Protonmail + VPN would hide their identities as far as Reddit is concerned, right?
I know everyone is having an absurd amount of fun watching this and laughing (so it seems), but I think we should be more aware of the many ways in which this is bad, which definitely includes millions of retail investors losing their money when they buy at the peak, use too much leverage, and so on. The idea of "Don't invest what you cannot afford to lose" has gone from a mantra to an outright joke that many investo…
Some people are in for some very real and hard lessons - even though others will make a killing.
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> 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.
There are entire threads and Discord channels dedicated to coordinating this. It will be extremely difficult to convince a court that there is no coordination or market manipulation, especially when there are people who are spelling that fact out. And reddit have all of their IP addresses.
> 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.
If you can prove that those allegations are indeed fake, then they can be held liable for that. But Citron's influence stems from the fact that they have published a large number of reports that were indeed correct, e.g. Valiant.
> The sentiment on the trade is eff those short sellers and their sketchy tactics.
What sketchy tactics? Expressing their view that a company like Gamestop is not worth very much on account of their outdated business model that relies on physical retail in a sector that has been going fully digital for the last 15 years?