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Reddit's GameStop, AMC surge is the new Occupy movement

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Re: Reddit's GameStop, AMC surge is the new Occupy movement

#21
post #15

Earlier quoted context omitted.

1. There isn't any one entity that is short 140% of the GME float. 2. If a stock shouldn't be allowed to be sold short past 100% then we should outlaw subletting apartments. Why shouldn't someone be allowed to pay to borrow something, and then rent it out? How is that manipulative in and of itself?

Could you elaborate on how shorting past 100% is comparable to subletting? How is shorting alike borrowing something?

It isn't

Re: Reddit's GameStop, AMC surge is the new Occupy movement

#22

Shorting a stock 140% is the market manipulation and should be criminal. Anything a large group does after some hedge fund pulls that stunt is fair game.

1. There isn't any one entity that is short 140% of the GME float. 2. If a stock shouldn't be allowed to be sold short past 100% then we should outlaw subletting apartments. Why shouldn't someone be allowed to pay to borrow something, and then rent it out? How is that manipulative in and of itself?

So if there isn't one entity short 140%, is it that there are multiple chains of shorting, like shorts on top of shorts that leads to the 140% target?

Not totally familiar with all this, just trying to understand.

Re: Reddit's GameStop, AMC surge is the new Occupy movement

#23

Shorting a stock 140% is the market manipulation and should be criminal. Anything a large group does after some hedge fund pulls that stunt is fair game.

1. There isn't any one entity that is short 140% of the GME float. 2. If a stock shouldn't be allowed to be sold short past 100% then we should outlaw subletting apartments. Why shouldn't someone be allowed to pay to borrow something, and then rent it out? How is that manipulative in and of itself?

Not sure if your comparison is so great.. are there apartments whose rent price fluctuates over 1000%?

Also subletting is not selling..

Re: Reddit's GameStop, AMC surge is the new Occupy movement

#24

Earlier quoted context omitted.

I also don't care about a hedge fund losing out but Id hardly call the current value of Gamestop to be "real" Economics. And for the few /r/wsb guys and girls making a killing there are a lot more late comers who will lose big, and can't afford to.

No, it's not real economics. It's the little guys coming together to fight the big guys at their own game.

A lot of little guys are gonna be left holding the bag at the end, though. The stock was probably overvalued at $10. It's definitely overvalued at $400.

Re: Reddit's GameStop, AMC surge is the new Occupy movement

#25
post #8

It’s terrifying because so many people have retirement funds tied up in stocks and this has the potential to decrease everyone’s trust in the idea of stocks.

There are people that "trust" stocks? To me it's always been a somewhat stupid casino game for the rich to rig.

Re: Reddit's GameStop, AMC surge is the new Occupy movement

#26

Shorting a stock 140% is the market manipulation and should be criminal. Anything a large group does after some hedge fund pulls that stunt is fair game.

1. There isn't any one entity that is short 140% of the GME float. 2. If a stock shouldn't be allowed to be sold short past 100% then we should outlaw subletting apartments. Why shouldn't someone be allowed to pay to borrow something, and then rent it out? How is that manipulative in and of itself?

There's supposed to be a law where the stock has to exist and be obtained before you can "borrow" it to short. The law was created in 2008 I believe but from what I understand, there are loopholes in it.

https://www.sec.gov/news/press/2008/2008-204.htm

Re: Reddit's GameStop, AMC surge is the new Occupy movement

#27
post #15

Earlier quoted context omitted.

1. There isn't any one entity that is short 140% of the GME float. 2. If a stock shouldn't be allowed to be sold short past 100% then we should outlaw subletting apartments. Why shouldn't someone be allowed to pay to borrow something, and then rent it out? How is that manipulative in and of itself?

Could you elaborate on how shorting past 100% is comparable to subletting? How is shorting alike borrowing something?

Shorting is literally borrowing the stock and then reselling it, so a shorter is pretty analogous to someone renting and then immediately subletting an apartment (Yes, there's the rent/buy distinction, which is what leads to short squeezes, but close enough). To get past 100% short interest just means some of the subletters have sub-sublet.

Re: Reddit's GameStop, AMC surge is the new Occupy movement

#28
post #3

Good. I'm tired of fake Economics where the value of a company or the product is not made from the real value of it, while some yuppies get rich in the proccess. The more they cry, the better. Hope is collapses so "middle" and low class workers can get fair prices of what they earn by doing actual hard work. Because this will create a good crash, dont fool about it. It will harm everyone, but at least this Century wi…

I also don't care about a hedge fund losing out but Id hardly call the current value of Gamestop to be "real" Economics. And for the few /r/wsb guys and girls making a killing there are a lot more late comers who will lose big, and can't afford to.

What is "real economics" if law, contracts and supply/demand isn't real economics?

Stock price was never supposed to closely mirror company's financials, that's a meme pushed by socialists that want to portray the stock market as wrong ("out of reality"). The financials are merely a indicator. It's stock market and what matters are the dynamics of that market, and the company itself is only a small part of that.

Re: Reddit's GameStop, AMC surge is the new Occupy movement

#29
post #3

Good. I'm tired of fake Economics where the value of a company or the product is not made from the real value of it, while some yuppies get rich in the proccess. The more they cry, the better. Hope is collapses so "middle" and low class workers can get fair prices of what they earn by doing actual hard work. Because this will create a good crash, dont fool about it. It will harm everyone, but at least this Century wi…

I also don't care about a hedge fund losing out but Id hardly call the current value of Gamestop to be "real" Economics. And for the few /r/wsb guys and girls making a killing there are a lot more late comers who will lose big, and can't afford to.

And who’s responsibility is that? WSB has been rallying around GameStop for over a month. It has 2 million subscribers. GME shows up 10s of times per day. There have been endless squabbles over it. If some rubberneckers come in now and lose money they could just as easily lost it by doing a thousand other silly things. TSLA and other meme stocks show that value is relative and fickle. We used to think advertising and social media were just used to tell people to buy a company’s products, but it is obvious that they are just as good for directly raising capital. Is it a capitalist utopia or a populist dystopia? I think it’s both.

Re: Reddit's GameStop, AMC surge is the new Occupy movement

#30
post #8

It’s terrifying because so many people have retirement funds tied up in stocks and this has the potential to decrease everyone’s trust in the idea of stocks.

Pick your funds wisely. No one should have their next meal dependent on a weird short position. Read the risk prospectus for your funds and take it seriously.

There is little deception. Funds that take crazy risks will say so in their prospectus. There's no chance your S&P500 index fund is taking a huge Bed Bath And Beyond short position when no one is watching.

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