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GameStop Is Rage Against the Financial Machine

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Re: GameStop Is Rage Against the Financial Machine

#281

Post by mikepurvis »

kqr wrote: post #212
piva00 wrote: post #173

Earlier quoted context omitted.

This is absolutely fucking ridiculous. Someone is getting fucked by their own leverage, they got caught, isn't that what the market is supposed to do? Kill the overleveraged non-sense to redistribute wealth to more efficient investments? It isn't a bank run to be blocked for the sake of society, this is just a bunch of rich people paying the price for risking too much... Boils my blood so deeply.

This is part of the game, though. The hardest part of gambling is not coming up with the big winning bet -- it's getting whatever counterparty to pay you once you've won. It's always been this way, in sports, in horses, and on Wall Street. People come up with all sorts of reasons to not pay you and you have to shape your strategy around this. Aaron Brown talks about how being a successful gambler is not about a few h…

The Big Short talks about this too— people trying to figure out how to bet against subprime mortgages in a way that the entity on the other side of it will actually be in a position to pay out (and be able to be compelled to do so).

Perhaps ironically, one of the central characters of that story, Michael Burry, is none too pleased at the current situation: https://www.bnnbloomberg.ca/michael-burry-calls-gamestop-ral...

EDIT: The Big Short, of course, not Moneyball.

Re: GameStop Is Rage Against the Financial Machine

#282

Post by paulpauper »

A lot of ppl are expecting this to be dumped hard. i dont think that is going to happen. I think rather it is going to stabilize eventually and not crash, much like Tesla. The market tends to do what consensus does not expect. GME is flush with cash and has the backing of various high profile billionaires. It may make a major acquisition or something like that.

Re: GameStop Is Rage Against the Financial Machine

#283

Post by majormajor »

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…

How much of "wall street" would lose major money off this? Just a few hedge funds? Is that even that meaningful in the long run or big picture?

Re: GameStop Is Rage Against the Financial Machine

#284

Post by hannasanarion »

psim1 wrote: post #153
littlestymaar wrote: post #137

Earlier quoted context omitted.

Retirement funds are a scam: when prices go up, funds manager take their bonus, when it goes down, the funds shareholders (that is, everyone) swallow up the loss. It even a double-edge scam, because now people are supposed to stand up for the finance behemoth because they holds their retirement hostage.

Within the United States, you will have a hard time finding a company with a traditional pension system. Almost all use 401(k) or similar retirement systems. If it is a scam, it is a well-supported scam.

Companies switched to 401ks from pensions precisely because it's a scam. With a traditional pension, the company needs to guarantee the availablity of funds for retirees. With a 401k, each individual employee is required to gamble their life savings on the stock market.

The result is that the company doesn't need to give a damn about long-term stability, they can focus on short-term gains for a carousel of owners that each demands a quick return and cash out. As a bonus, the 401k system forces the government to bow to the whim of the stock market because every citizen is now clinging for dear life onto the same mechanism the owning class use to grow their hoards.

It's a win-win-win for the rich:

* they don't need to pay retirees

* they can squeeze more money out of companies at the expense of customers, workers, future owners, and the environment

* they can get leverage over the entire society by credibly threatening the lives of millions of retirees dependent on their table scraps

Re: GameStop Is Rage Against the Financial Machine

#285

Post by kart23 »

Can anyone tell me why SEC won't just step in, suspend trading, and force some kind of resolution? Its obvious that the market has been effectively broken by the short sellers. It might just make the redditors more angry and likely to hit other shorted stocks, and possibly cause markets to decline, but its the best applicable solution i see.

https://www.sec.gov/oiea/investor-alerts-and-bulletins/ib_tr...

Re: GameStop Is Rage Against the Financial Machine

#286

Post by raesene9 »

Blackstone4 wrote: post #140
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 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…

But what they're trying to achieve here (AFAIK) is a short squeeze. The whole point of this move is that there's massive short interest in GME, and the WSB crew (and anyone else long on it) can take advantage of it until those positions are closed.

After that, if people hang around, sure they'll likely lose money if they bought at the top, but until those big positions close, there's money to be made.

Re: GameStop Is Rage Against the Financial Machine

#287

Post by lamp_book »

partiallypro wrote: post #274
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 might have started on social media, but make no mistake that the professionals are the ones that piled on to take advantage of the situation.

Burry (fund manager who Bale played in the Big Short) is the one who put this trade on most people's radar months ago.

Re: GameStop Is Rage Against the Financial Machine

#288

Post by raesene9 »

esoterica wrote: post #224
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…

> 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. This is such hilariously clueless nonsense, the fact that it's expressed with such smug confidence and upvoted to the top of the thread is really emblematic of HN's complete ignorance of any topic outside of programming. When retail volume…

Whilst most of Wall street may like this, I'd guess there's at least some parts (the hedge funds with large short positions in GME) who aren't having a good time today.

Re: GameStop Is Rage Against the Financial Machine

#289

Post by balls187 »

xorx wrote: post #117
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'…

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

Mainly because they're playing with their own money, while the hedgefunds are playing with House's Money.

Re: GameStop Is Rage Against the Financial Machine

#290

Post by cellar_door »

boringg wrote: post #112
this_user wrote: post #87

Earlier quoted context omitted.

> 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.

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