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GameStop Is Rage Against the Financial Machine

bloomberg.com

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Re: GameStop Is Rage Against the Financial Machine

#381

Post by Kluny »

Blackstone4 wrote: post #89
dannyw wrote: post #50

Earlier quoted context omitted.

I doubt you’d be feeling like an idiot if the short squeeze actually happens, sending the stock to wonderland ($$$$).

How do you know it is not in wonderland already? What price would you put on it? For me what is important is the fundamental valuation of the company...

Normally that's true, but I don't think the company's actual valuation has much to do with what's happening here - the company is basically worthless. The only question is how much money you're willing to throw away, because absolutely no one can predict what will happen tomorrow.

Re: GameStop Is Rage Against the Financial Machine

#382

Post by hntrader »

I'd like to know whether these retail investors see Gamestop as artwork or as speculation/investment.

Artwork - they buy it not because of any intrinsic value or expectation of a dividend/capital gain, but because of reasons pertaining to subjective utility - childhood nostalgia, a desire to get symbolic revenge at hedge funds, entertainment value, or a desire to access gambling services in a country where online gambling is restricted.

Investment - expecting to make a profit through greater fool hypothesis, a short squeeze, or because they believe in the company (e.g positive reflexivity of stock price and exposure leading to more funding and business, respectively).

Arguably it's a combination of both, and I'd say it's a fairly new phenomenon in financial markets (not so much other markets), perhaps TSLA being another good example.

Re: GameStop Is Rage Against the Financial Machine

#383

Post by pbhjpbhj »

rabuse wrote: post #197
mdoms wrote: post #166

Earlier quoted context omitted.

> One individual sitting at $31M currently on a $50k investment. What happens when one tries to cash out this kind of position? Does he or she actually walk away with $31M?

Yes. The large order is placed on the market, and it would be gobbled up at this point in time.

I know nothing about trading:

Presumably they'd want to split the sell offer into smaller portions to avoid indicating a turn in the market which might cause a fall in price before they realise [as big a] profit on their position?

Like trying to get out of a place when you see things heading south (ie a calamity approaching). If you run for the door then everyone will see you and the people close to the door might block your exit as they seek to escape. If you cautiously walk, avoid being direct, etc., you've more chance to get out.

Re: GameStop Is Rage Against the Financial Machine

#384

Post by ta1234567890 »

This is a great example of how the stock market is not about fundamentals, just like Bitcoin, it’s all about popularity and perception.

In the end, people don’t care if the “stock is really worth” the price, they only care if themselves or someone else are willing to pay the price, nothing else really matters.

Re: GameStop Is Rage Against the Financial Machine

#385

Post by [deleted] »

TuringNYC wrote: post #344
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…

This Reddit Post is very revealing: https://twitter.com/inactivist_/status/1354537152445521923/p...

[deleted]

Re: GameStop Is Rage Against the Financial Machine

#387

Post by MrStonedOne »

> and I don’t think the answer to today’s many ills is to empower poor people to bankrupt themselves with margin accounts and derivatives.

I love the double speak wrt margin accounts. They want to mix up naked margin accounts where your broker gives you a loan of money to trade with, with the types of margin accounts used by WSB peeps, where the margin is only to cover the 2 day settlement window or the time it takes a deposit to transfer, ie: covered margins.

My counter point: I don’t think the answer to today’s many ills is to parentalise retail investors with a holier than thou attitude that is driving half of the spite from these investors.

The soundbite is that they have to protect the poor whittle retail investor from scam stocks, but the effect is and will always be to lock off higher gain opportunities to institutional investors and away from poorer investors.

Don't buy it.

Re: GameStop Is Rage Against the Financial Machine

#388

Post by supercanuck »

hntrader wrote: post #382

I'd like to know whether these retail investors see Gamestop as artwork or as speculation/investment. Artwork - they buy it not because of any intrinsic value or expectation of a dividend/capital gain, but because of reasons pertaining to subjective utility - childhood nostalgia, a desire to get symbolic revenge at hedge funds, entertainment value, or a desire to access gambling services in a country where online gam…

it started with this..

https://www.youtube.com/watch?v=JWdWCtLMoU0

Re: GameStop Is Rage Against the Financial Machine

#389

Post by kgwgk »

xur17 wrote: post #352
kahrl wrote: post #313

Earlier quoted context omitted.

Short sellers illegally borrowed more stock that actually existed. They are the criminals here. Not the people discovering this and taking the criminals for everything they have.

Is it actually illegal to do this (not should it be, is it)?

Not at all.

Re: GameStop Is Rage Against the Financial Machine

#390

Post by pera »

TuringNYC wrote: post #344
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…

This Reddit Post is very revealing: https://twitter.com/inactivist_/status/1354537152445521923/p...

this actually makes me want to buy a couple of gme stocks
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