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GameStop Is Rage Against the Financial Machine

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Re: GameStop Is Rage Against the Financial Machine

#971

Post by delaaxe »

bilbo0s wrote: post #961
delaaxe wrote: post #566

Earlier quoted context omitted.

No, the short float is still hight. Old short have covered but new ones have replaced them

Wait? Wouldn't new ones be shorts against the inflated prices? It could easily be other retail investors shorting the reddit pump and dump. I suppose as long as no one innocent is hurt, it doesn't really matter if some redditors and hedge funds are cleaned out. But it seems more and more likely that the only thing that will have been done here in the end is to enrich the market makers.

This is being framed as retailers vs. institutional but in reality there's both on each side.

Re: GameStop Is Rage Against the Financial Machine

#972

Post by cwhiz »

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…

Yeah that’s why the SEC, White House, MSM, Discord, and multiple brokerage firms all acted in an obviously concerted effort yesterday.

It’s because of their sincere concern for retail, obviously.

Re: GameStop Is Rage Against the Financial Machine

#973

Post by GordonS »

caddemon wrote: post #816
GordonS wrote: post #485

Earlier quoted context omitted.

> Also, there is a worry about multiple hedge funds going bankrupt Like you, I struggle to feel sorry for them - surely a responsible hedge fund shouldn't be shorting a single stock with sums of money they can't afford to lose? If they really are behaving like that, they must think they can't lose...

Isn't this complicated a bit by the way shorts work? Like when you buy $n of stock, it is impossible to lose more than $n. But with shorting you could lose unpredictable amounts if shit hits the fan. I agree it's not a good look for a hedge fund to have put themselves in this position, but I think it was more about believing they couldn't lose so extraordinarily badly, not that they couldn't lose at all.

To me, that just says they shouldn't be betting money against potentially unlimited losses, especially without the kind of fallbacks that @nrmitchi describes.

Re: GameStop Is Rage Against the Financial Machine

#975

Post by recny »

admax88q wrote: post #315
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…

> The "little guy" refers to the Reddit traders that are making a killing right now, with the expectation that eventually the stock price will crash again. The reddit traders are only making a killing if they're selling these inflated positions. At some point somebody will be left holding the bag, odds are it will be a bunch of people from wallstreetbets and other retail investors that are late to the party. There's…

> The reddit traders are only making a killing if they're selling these inflated positions. At some point somebody will be left holding the bag, odds are it will be a bunch of people from wallstreetbets and other retail investors that are late to the party.

This isn't your typical pump and dump. The plan is to bleed Melvin of every last cent, and transfer it to WSB. Melvin is forced to buy, no matter the price.

While some individual redditors might lose money, as a group they'll make a huge profit.

Re: GameStop Is Rage Against the Financial Machine

#976

Post by gruez »

user3939382 wrote: post #924
smabie wrote: post #898

Earlier quoted context omitted.

HFT firms do not front run retail orders. This does not happen.

https://seekingalpha.com/article/4205379-robinhood-is-making...

That's just describing payment for order flow, which is entirely different.

Re: GameStop Is Rage Against the Financial Machine

#977

Post by Galanwe »

SigmundA wrote: post #849
pishpash wrote: post #830

Earlier quoted context omitted.

The bank has an "asset" in their account that is the debt note from you. This asset has the value of the money you borrowed, plus interest, and it can be sold for that. One dollar just became two. (If it's a mortgage it's called a mortgage-backed security which the Federal Reserve will gladly take off your hands currently. The money they pay is created from nothing.)

That asset has associated risk vs cash that for the most part doesn’t. The risk being you don’t get the cash back. One dollar did not become two. If you sell the asset you get your cash back from whoever bought it, and it comes out of their account, again one dollar did not become two, unless it’s the Fed sure, they can create money. Shares aren’t created unless the company issues more right?

> That asset has associated risk vs cash that for the most part doesn't.

Yes, that's why when you accept to lend your stocks, you will receive interests in exchange.

Re: GameStop Is Rage Against the Financial Machine

#978

Post by adolph »

nrmitchi wrote: post #928
adolph wrote: post #895

Earlier quoted context omitted.

Because they want to be listed in the exchange without going the traditional way. That is the concept floated for Dell using VMWare in the linked article.

As opposed to just going some SPAC route that isn't a meme stock that could very well lose 95% of it's value in the next week/month? The approach may have been suggested for Dell/VMWare, but at the moment GME is a totally different beast.

Some say bubble, others say “frothy.” [0] If you think its valuation will reduce, are you shorting it?

Getting acqui-listed thru GameStop would probably be less expensive than paying some phoney like the former speaker of the house [1] and you get a bunch of retail locations to boot. The existing management of GameStop cashes out a year later as they step aside a la Apple-Next.

0 https://www.nytimes.com/2005/12/25/weekinreview/2005-in-a-wo...

1 https://www.reuters.com/article/us-enpc-ipo-idUSKBN25K26O

*This post is random Internet BS and does not represent financial advice. If you or anyone you know feels a need to “buy” an equity, stock or other advanced financial product please consult with a board certified psychologist.

Re: GameStop Is Rage Against the Financial Machine

#979

Post by mox1 »

admax88q wrote: post #315
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…

> The "little guy" refers to the Reddit traders that are making a killing right now, with the expectation that eventually the stock price will crash again. The reddit traders are only making a killing if they're selling these inflated positions. At some point somebody will be left holding the bag, odds are it will be a bunch of people from wallstreetbets and other retail investors that are late to the party. There's…

Just another point here. The original (aka prior to Jan 15ths ish) reddit traders had a fair market value of $80-$150 on this stock.

Looking at the current options prices, if / when this is all over GME will probably land within that range.

Yes, there is a lot of crazy new money going in here at super high prices, but all of the regular WSB users going in on this stock weren't planning on bag-holding, etc. It was a value play.

Re: GameStop Is Rage Against the Financial Machine

#980

Post by VectorLock »

city41 wrote: post #423
VectorLock wrote: post #357

Earlier quoted context omitted.

>As best I can figure, most of the /r/ guys are doing this as a form of trolling and aren't expecting to get rich off it or pour their live-savings into it. I saw a lot of those "pour their life-savings" into it postings. A lot of "yacht or food stamps" type sentiments being shared.

On the flip side, if you watch the comments go by in the megathread, quite a few people are just buying 1 stock (often times just a fraction of a stock).

The fact that there are many people who are only gambling a small amount doesn't mean there aren't great amounts of people who are putting themselves in financial peril. It just means you have to look harder for them.
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