Chamath Palihapitiya on Wallstreetbets [audio] • Hacker News Board

Re: Chamath Palihapitiya on Wallstreetbets [audio]

#21

Post by f430 » Wed, Jan 27, 2021, 8:40 PM UTC

Layke1123 wrote: post #10

runawaybottle wrote: post #7

I really thought this was a good articulation on Chamath’s part and would love HN to chime in with their perspective. Edit: Couple of stand-out comments he made, paraphrasing: ‘The best wsb due diligence can be indistinguishable from top hedge fund due diligence, the funds don’t have an edge’. Right. It doesn’t take a genius to know GameStop will have a hard time in a cd-less world and full digital download marketpla…

He is exactly right. The powers that be (dark money) have long sought to remain in control of their subjects. Just because we don't have monarchies doesn't mean we don't have a few elite who few themselves as rightful directors and owners other all things on Earth. They have manipulated markets through various institutions and making knowledge so hard to come by without going into massive debt in order to maintain th…

SEC is apparently now investigating. If they take the side of hedge funds then there's going to be another occupy wall street movement, this time with millions of pissed off retailers, robin hood, ready to take class action lawsuits.

Re: Chamath Palihapitiya on Wallstreetbets [audio]

#22

Post by curiousgal » Wed, Jan 27, 2021, 8:40 PM UTC

xadhominemx wrote: post #17

curiousgal wrote: post #15

I think the funniest part of this entire phenomenon is that Robinhood is now taking money from the rich and distributing it to the masses in a more literal sense. At least for now. On a more serious note, I don't get how a stock can be 140% shorted. Does that mean once you return a portion of the shares you borrowed you have to rebuy part of it and return it again? Also when would these short sellers get margin calle…

Yea money is flowing from hedge funds who are short to retail investors as the stock runs up, but once it inevitably moves back down it will be the retail bag holders inflicted with massive losses.

Wouldn't the short sellers have to buy all of what they shorted from the retail investors?

Re: Chamath Palihapitiya on Wallstreetbets [audio]

#23

Post by tequila_shot » Wed, Jan 27, 2021, 8:40 PM UTC

in3d wrote: post #16

He didn’t have any answer as to the fate of new bag holders he created with his tweet. That was irresponsible. His plan to make hedge funds disclose their positions daily as some kind of a solution to overleverage makes no sense whatsoever. And he’s delusional about research skills of WSB posters as compared to Wall Street analysts.

um, I don't follow wsb, but based purely on what you said, you don't back your comments either. So much for taking the high-horse. Chamath at least has the$$ to show for.

Re: Chamath Palihapitiya on Wallstreetbets [audio]

#24

Post by xadhominemx » Wed, Jan 27, 2021, 8:41 PM UTC

runawaybottle wrote: post #7

I really thought this was a good articulation on Chamath’s part and would love HN to chime in with their perspective. Edit: Couple of stand-out comments he made, paraphrasing: ‘The best wsb due diligence can be indistinguishable from top hedge fund due diligence, the funds don’t have an edge’. Right. It doesn’t take a genius to know GameStop will have a hard time in a cd-less world and full digital download marketpla…

Why couldn’t game stop equity go to zero? Equity is just the least senior claim on assets, it goes to zero all the time.

Re: Chamath Palihapitiya on Wallstreetbets [audio]

#25

Post by paulgb » Wed, Jan 27, 2021, 8:41 PM UTC

in3d wrote: post #16

He didn’t have any answer as to the fate of new bag holders he created with his tweet. That was irresponsible. His plan to make hedge funds disclose their positions daily as some kind of a solution to overleverage makes no sense whatsoever. And he’s delusional about research skills of WSB posters as compared to Wall Street analysts.

I anticipate ours won’t be a popular opinion on here, because the whole “stick it to the man” narrative is tempting, but I have to agree. I listened in on a Clubhouse room today where people were teaching each other how to options trade and I couldn’t help but think, these are the people, not Wall Street, who are going to be left holding the bag.

Re: Chamath Palihapitiya on Wallstreetbets [audio]

#26

Post by m8s » Wed, Jan 27, 2021, 8:42 PM UTC

in3d wrote: post #16

He didn’t have any answer as to the fate of new bag holders he created with his tweet. That was irresponsible. His plan to make hedge funds disclose their positions daily as some kind of a solution to overleverage makes no sense whatsoever. And he’s delusional about research skills of WSB posters as compared to Wall Street analysts.

I agree that he ignored a few important questions. There is the very real possibility (and it's more like a certainty) that regular people will join the bandwagon too late and get hurt. When hedge funds get hurt, they still have plenty of money to survive. When I see posts (although who knows if they are real) about putting your life savings on something like this, losing that money has very serious real-world implications.

This all is certainly highlighting that these systems have been fundamentally unfair for a long time, but that doesn't mean that real people won't be hit hard financially as a result.

I don't know, maybe I'm just far too conservative with my money to do something like this.

Re: Chamath Palihapitiya on Wallstreetbets [audio]

#27

Post by xadhominemx » Wed, Jan 27, 2021, 8:42 PM UTC

curiousgal wrote: post #22

xadhominemx wrote: post #17

Earlier quoted context omitted.

Yea money is flowing from hedge funds who are short to retail investors as the stock runs up, but once it inevitably moves back down it will be the retail bag holders inflicted with massive losses.

Wouldn't the short sellers have to buy all of what they shorted from the retail investors?

Short sellers cover their borrowed shares. They are not left with any stock after they close their trade.

Re: Chamath Palihapitiya on Wallstreetbets [audio]

#28

Post by thunkshift1 » Wed, Jan 27, 2021, 8:43 PM UTC

xadhominemx wrote: post #19

paxys wrote: post #14

Wall Street is a large scale gambling operation with a public-backed safety net. Apparently they don't like it when people call this out. And they definitely hate it more when outsiders start beating them at their game.

Nonsense

No, its not. Have you forgotten the bailouts already?

Re: Chamath Palihapitiya on Wallstreetbets [audio]

#29

Post by _qbjt » Wed, Jan 27, 2021, 8:43 PM UTC

xadhominemx wrote: post #19

paxys wrote: post #14

Wall Street is a large scale gambling operation with a public-backed safety net. Apparently they don't like it when people call this out. And they definitely hate it more when outsiders start beating them at their game.

Nonsense

Sounds about right to me.

Re: Chamath Palihapitiya on Wallstreetbets [audio]

#30

Post by runawaybottle » Wed, Jan 27, 2021, 8:44 PM UTC

systemvoltage wrote: post #18

I disagree with Chamath’s take. Chamath sounds intelligent but it’s misplaced. It’s like analyzing Black Friday stampedes with the rationality of product quality assessment, better customer service, and overall better shopping experience. No. That’s not why these people are rushing in. Black Friday stampedes are a cascading phenomenon of FOMO + price trickery. It’s a giant mob with irrational behavior. Let’s not poli…

It’s really not a cesspool. Outside of the frenzy, they do a solid job (when things are quiet) of finding cheap stocks with a potential to move within a year.

Even GME, before the phenomenon, the subreddit was mostly targeting 40 dollars around April earnings. The short squeeze was a real tactical play, but most people weren’t 100% on that as the main catalyst (as in, most people really thought the ps5/Xbox sales would be realized at earnings time beyond the ridiculous short position of bankruptcy).

It’s a pretty sensible subreddit.