221–230 of 475 posts
Although there is definitely a David/Goliath fairness scandal in here, this piece doesn't seem to know the difference between market makers, brokers, and hedge funds.
They're all acting in concert right now.
Earlier quoted context omitted.
Yes. They should be forced to provide the service they promised. It’s not my fault their business model is failing for a particular ticker on a particular day. If they can’t, then some advance notice is needed. Making this decision instantly without giving customers time to move their holdings elsewhere is not okay. That being said, I’m surprised people are still using them for day trading. They don’t have a great tr…
>It’s not my fault their business model is failing for a particular ticker on a particular day. As I see it, regardless of how it should be, one needs to accept that trading with RH has limitations/trade-offs compared to a "proper" brokerage. I get your statement, but like you said, their track record already speaks for itself.
Earlier quoted context omitted.
Exactly. Just take a look at the shareholders and count how many shares those institutional have: https://money.cnn.com/quote/shareholders/shareholders.html?s... It's Wall Street vs Wall Street - redditors were just the catalyst, and will be left holding the bag.
What's surprising is all the concern for redditors here and elsewhere; whilst the overwhelming vibe from r/wsb is this meme resulting in squeeze is strictly personal and not at all business for most that are holding on. The rest (presumably greedy) are either making money or losing money because they're either riding up with the market or down. That's a feature of the zero-sum game that the financial system has been…
There's no distinction between the two, if you have that mindset you will be left holding the bag even if you think you won.
Earlier quoted context omitted.
Sure, but Gabe Plotkin is the uber-wallstreeter. All the rich-but-average Chosen Ones who get internships because of mommy and daddy look at what guys like him accomplish and think, "someday that too can be mine." This is like that scene in 300 where Leonidas makes Xerxes bleed. The point isn't that Wall Street has fallen. It's that, for once, Wall Street is fallible.
I can't see how that's the case. They aren't going to suffer for this, let alone personally. Even if the fund tanks, they can set up a new one, probably with sympathetic money or just cruise off into the sunset with their millions.
I don't buy it.
Once again, this insistence on viewing 'Wall Street' as a monolothic entity. The largest asset management firm on Earth holds over 9 million Gamestop stock, none of the big banks that received bailouts in 08 are affected by this, 99.9% of hedge funds are not affected by this, high frequency traders are probably making a bundle. Institutional money was long Gamestop before this story entered the public consciousness.…
> Short interest as a percentage of float above 20% is extremely high
> A high NYSE short interest ratio means that the stock market as a whole is vulnerable to a “short-squeeze.” It could rise quickly if new economic data, political news, or other types of information are released that make investors more optimistic.
GME was shorted 140%.
No idea if 20% being risky is sage advice but it seems like you're totally right: some hedge funds took on a massive risk, the market saw the opportunity and played the other side.
> With their heads in cloud nine, hedge funds tried to kill GameStop ($GME). They tried to squeeze it so much that it would suffocate and die. They didn't care about the people who will be out of jobs, unable to pay their bills, or even survive. Blinded by greed, all they care about was money. this is a bit much. shorting != trying to kill a business. it can certainly depress the stock price, but so can closing a lon…
Does not seem far fetched. Killing the business means maximum profit for the shorters. Having a short interest of about 140% is also a good indicator that they would have loved to see GME bankrupt. In the end a short means a future buy and 140% of shares bought in the future means the price will go up eventually..
I'm really confused why the general public is enraged at the brokerages' decision to stop new buy orders for GME. It's very clear that retail is going to lose their shirts in the end of all of this. By blocking new buy orders, the brokerage is effectively protecting its naive clientele. This isn't some government conspiracy. This is a firm trying its best to operate in the best interest of its clients.
Earlier quoted context omitted.
Do you know how this whole thing started? It seems you're just coming in and dismissing the whole thing, when the person who started it with $50k is now sitting on gains of $50m and even people who bought in yesterday are up almost 2x.
And some people who can't really afford to buy Powerball tickets every week. And a few of them hit it big. Doesn't make it a rational choice from a purely economic perspective.
Earlier quoted context omitted.
That sitting around playing drums and smoking doesn’t accomplish anything productive.
That’s called being civil. Would you prefer they instead break the law to have their voices heard? Do you want wall street suits to fear for their life?
Earlier quoted context omitted.
I can't see how that's the case. They aren't going to suffer for this, let alone personally. Even if the fund tanks, they can set up a new one, probably with sympathetic money or just cruise off into the sunset with their millions.
Loosing billions still hurts a lot I would guess.