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GameStop Is Rage Against the Financial Machine

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Re: GameStop Is Rage Against the Financial Machine

#251

Post by nightowl_games »

boringg wrote: post #218
nightowl_games wrote: post #124

Earlier quoted context omitted.

> For them to win this they need to keep putting more money into the fire which pulls in bigger and bigger fish. This isn't true. The institutions with Short Exposure are connected to the institutions who buy Robinhood data and perform high frequency trading on those orders. Citadel and Melvin can BUY GME themselves to mitigate the risks. It is likely that a substantial amount of GME is being held by the institutions…

> This isn't true. The institutions with Short Exposure are connected to the institutions who buy Robinhood data and perform high frequency trading on those orders. Citadel and Melvin can BUY GME themselves to mitigate the risks. It is likely that a substantial amount of GME is being held by the institutions who had short exposure. It's basic risk mitigation. -- They would have to do this at great cost and loss (rumo…

Fair assessment.

I am just pushing back at the narrative that this is a "win" for the little guy and a "loss" for wall street.

Retail investors putting money into the market _at all_ is a net win for wall street _every time_ imo.

Re: GameStop Is Rage Against the Financial Machine

#254

Post by koheripbal »

berns wrote: post #236
koheripbal wrote: post #175

Earlier quoted context omitted.

> You know why front running isn't illegal? Because it keeps happening and companies keep getting fined for it. This is not a logical sentence. They are obviously getting fined because it's illegal. The traders involved are also terminated, fyi. All banks are required to submit automated reports on Front Running detection algorithms daily to the regulators. Every trade is evaluated by the compliance systems. If you t…

> This is not a logical sentence It's illegal by definition. But since they can pay a fine for a net gain, you can say that they legally profit from doing something illegal.

Which is why the fines are always greater than the net gains.

Obviously. Do you think the SEC is full of morons?

Re: GameStop Is Rage Against the Financial Machine

#255

Post by moolcool »

germinalphrase wrote: post #90
moolcool wrote: post #54

Earlier quoted context omitted.

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.

There are something like 3 million subscribers to WSB. How many people are really making that kind of money on meme stocks?

Where have you been? TSLA was one of the biggest meme stocks and WSB won big.

Re: GameStop Is Rage Against the Financial Machine

#256

Post by jcfrei »

koheripbal wrote: post #169
jimbob45 wrote: post #138

Earlier quoted context omitted.

Same stuff goes down on 4chan and several other sites. Not to mention the fact that the SEC has neglected to investigate insider trading for years now. IMHO why the fuck is shorting legal to begin with. Short insurance should be mandatory for short trading.

> the fact that the SEC has neglected to investigate insider trading for years now. Obviously false: https://secsearch.sec.gov/search/docs?utf8=%E2%9C%93&affilia... > 4chan and several other sites... Scale dictates enforcement priorities, obviously. Like a lot of people, they don't deal with issues until they are large and impact the market. They are ABSOLUTELY going to intervene here. First with some immediate actio…

> They are ABSOLUTELY going to intervene here.

I wouldn't be so certain about this at all. Matt Levine has a good take on it: https://www.bloomberg.com/news/newsletters/2021-01-26/will-w...

Re: GameStop Is Rage Against the Financial Machine

#257

Post by germinalphrase »

moolcool wrote: post #255
germinalphrase wrote: post #90

Earlier quoted context omitted.

There are something like 3 million subscribers to WSB. How many people are really making that kind of money on meme stocks?

Where have you been? TSLA was one of the biggest meme stocks and WSB won big.

I hear the hype. I see a few big winners, but there are a lot of people piling on that don’t know the first thing about why prices go up and down.

Re: GameStop Is Rage Against the Financial Machine

#258

Post by eastbayjake »

stonecraftwolf wrote: post #88
elliekelly wrote: post #49

Earlier quoted context omitted.

And (no one seems to be talking about this) but there's definitely a systemic cost. Going forward, how do you effectively manage the risk of one of your positions becoming a meme? This happening once is an interesting situation and I've certainly enjoyed watching it play out. If it happens repeatedly it will definitely start to undermine the investing public & market participant confidence in the market. That's certa…

I don’t think dismissing this phenomenon as a stock turning into a meme is right. WSB is...something, but there is actually a rationale behind going long GME. If you think that the new CEO, known for turning dead retail into profitable online content and e-commerce businesses (as I understand it), is going to turn GME around, then buying $12 Apr 21 calls for thirteen cents or whatever it was makes sense absent any no…

To clarify: not a new CEO (current one has been in place since April 2019) but rather an activist shareholder who bought a large stake and got seats on the board as a result, and that guy has the e-commerce turnaround story

Re: GameStop Is Rage Against the Financial Machine

#260

Post by scarmig »

krok wrote: post #118
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 with…

For the interested:

https://www.ft.com/content/1fcb4d60-b1df-11e8-99ca-68cf89602...

"Was this the right call? I think so. All our competitors also shunned any photos of Manhattan bank branches. The right to free speech does not give us right to shout fire in a crowded cinema; there was the risk of a fire, and we might have lit the spark by shouting about it."

Enraging. You're allowed to shout fire in a crowded theater if there is, you know, a fire. Tapping all the people in the box seats on the shoulder to give them a heads up about the fire so they can get to the exit before everyone stampedes for it is sociopathic, not social-minded.

I guess it's to his credit that he admitted to this, in the same sense that I'd credit a murderer confessing his crime and bringing the police to the body.

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