GameStop Is Rage Against the Financial Machine • Hacker News Board

Re: GameStop Is Rage Against the Financial Machine

#291

Post by balls187 » Wed, Jan 27, 2021, 9:24 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 some of them also manage funds that are people from Mainstreet's retirements.

So while, yeah fun to stick it to the wealthy elite, I feel the law of unintended consequences is going to rear it's head much like crash of the housing market in 2007.

Re: GameStop Is Rage Against the Financial Machine

#292

Post by rjbwork » Wed, Jan 27, 2021, 9:25 PM UTC

kart23 wrote: post #285

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...

The forced resolution will be to force the shorts to cover. Screwing people that took the other side of the trade because the short sellers screwed up doesn't really make any sense to me.

Re: GameStop Is Rage Against the Financial Machine

#293

Post by paxys » Wed, Jan 27, 2021, 9:25 PM UTC

paulpauper wrote: post #282

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.

There is a massive difference between Tesla and GameStop. The latter is not flush with cash, but rather hundreds of millions of dollars in debt. Their revenue has been declining every quarter. There is no long term business plan, the digital game sales space is already too crowded. It will be a miracle if they can manage to turn around.

Re: GameStop Is Rage Against the Financial Machine

#294

Post by QuesnayJr » Wed, Jan 27, 2021, 9:25 PM UTC

piva00 wrote: post #173

beervirus wrote: post #161

Earlier quoted context omitted.

> Right now there appear to be curbs on GME and AMC buy orders for TD Ameritrade and Schwab customers. Yes indeed. Ameritrade won't even let me exercise the calls I already own. It's ridiculous.

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.

So you think GameStop shares are genuinely worth $375? GameStop traded around $20 a share for the past couple of years. You think that right now the company is worth almost 20 times what it was worth two years ago?

Re: GameStop Is Rage Against the Financial Machine

#295

Post by Miner49er » Wed, Jan 27, 2021, 9:26 PM UTC

kart23 wrote: post #285

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...

It's not like this is the first time a short squeeze has happened. Has the SEC stepped in for other squeezes? If they were gonna step in, it should have been when naked shorting was occurring, not now.

Re: GameStop Is Rage Against the Financial Machine

#296

Post by tonfa » Wed, Jan 27, 2021, 9:26 PM UTC

blhack wrote: post #62

ISL wrote: post #32

Earlier quoted context omitted.

It isn't just retail that is going to get destroyed -- the option-sellers may not have enough capital to hedge effectively. A lot of parties are going to be harmed by this; it is an expensive tuition payment to the school of hard knocks. The most interesting technical thing about this fracas is the fact that WSB has managed to play the options-sellers off against the shorts to set this off. The kids have temporarily…

Reading through the comments on WSB, I actually don't think the losers care. They just want to see the short sellers suffer. They're just mad, and while I think they hope they make money, I think most of them just want to see the people they feel like control their lives suffer. It's past clever trading at this point.

I think it largely spilled over at this point, it's been mentioned in every mainstream media around the globe, and I'd assume there's a lot of FOMO going on.

While it's likely that some of the wsb crowd plays it yolo style and doesn't care (it's for the lulz), I don't think the people who invest because they saw it on mainstream media will see it that way.

Re: GameStop Is Rage Against the Financial Machine

#297

Post by paxys » Wed, Jan 27, 2021, 9:26 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…

It would probably take $5-$10 billion to purchase Reddit outright today. Its last funding round a couple of years ago valued it at $3 billion, and it has grown a lot since.

Re: GameStop Is Rage Against the Financial Machine

#298

Post by spiralx » Wed, Jan 27, 2021, 9:28 PM UTC

TrackerFF wrote: post #168

But let's not kid ourselves here - a lot of WSB users are trading under the pretense that this is some great class war against the "elite". Here's what's going to happen, in the end (my predictions): - Some institutional investors will make an absolute killing - Some retail investors will make a killing - A bunch will make fast'n easy gains - A good share of retail investors will stand holding the bag. Sure, some sho…

This just seems like a continuation of the anti-short selling hysteria whipped up by Elon Musk over the last few years. As you say nothing will have changed in a years time.

Re: GameStop Is Rage Against the Financial Machine

#299

Post by jscheel » Wed, Jan 27, 2021, 9:28 PM UTC

beervirus wrote: post #161

xorx wrote: post #117

Earlier quoted context omitted.

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'…

> Right now there appear to be curbs on GME and AMC buy orders for TD Ameritrade and Schwab customers. Yes indeed. Ameritrade won't even let me exercise the calls I already own. It's ridiculous.

Are you trying to do an early exercise, or do you mean that they won't let you sell your calls? If you are trying to exercise, do you have the cash to cover, or are you trying to use margin to do it?

Re: GameStop Is Rage Against the Financial Machine

#300

Post by tonfa » Wed, Jan 27, 2021, 9:29 PM UTC

dannyw wrote: post #53

xiphias2 wrote: post #46

Earlier quoted context omitted.

Also with out if money call options you can have 5x leverage quite easily with limited downside, and that's what retail is doing on masse. It's more fun than playing lottery for sure.

Also with half of the market being passive, every $1 of active money is matched by $1 of passive money.

What does it mean? The passive ownership usually follows market cap, it doesn't need to buy because the share goes up, it was already owning the correct fraction (ok unless it suddenly enters the sp500 then it might move the price :))