Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

cnet.com

Post reply on HN
Print view View original

41–50 of 281 posts

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

#41

Post by cl42 »

auto wrote: post #22
djoldman wrote: post #13

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?

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.

Yes. If I short a share, I’m selling the share to someone and planning to buy it back later. That person who bought the shares from me can then lend them to someone else... so now two shares are being shorted when only one real share exists.

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

#42

Post by atombum »

kuu wrote: post #37
monoideism wrote: post #36

Earlier quoted context omitted.

Parent isn't claiming GME is "real" economics. Parent is claiming GME will help pull down our current fake system, and help the middle and lower classes receive fair compensation from the system. Whether this approach works or not, I don't know. But the status quo isn't tenable for a democratic society. This chart says it all: https://www.epi.org/productivity-pay-gap/

What did happen around 1979 to have such a clear change?

Ronald Reagan happened.

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

#44

Post by ta1234567890 »

ashtonkem wrote: post #19
anthk wrote: 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…

Be careful what you wish for. The upper classes tend to recover from these crashes much more rapidly than the lower classes do.

Bailouts for big companies owned by the rich, $2k paycheck (if lucky) for the rest.

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

#45

Post by InTheArena »

I think this is overstating it a bit. The WSB guys have figured out something simple - that in manipulating stocks to take them down via shorts and public statements - the institution doing the short is very very vulnerable to a short squeeze, in which everyone might make some money, some people astronomically so.

Tesla's current stock price is very much a result of some very public shorts, which led to a series of short squeezes. Now it doesn't fall because the people who pulled the short squeeze can't unwind their trade quickly without loosing everything.

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

#46

Post by nradov »

avidphantasm wrote: post #39
djoldman wrote: post #13

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?

Can anyone explain what utility, to the real economy, that short selling stocks provides? Practically speaking, why is shorting useful? What problems in the financial system does it solve. Asking in earnest.

Short selling accelerates price discovery in order to allow for more efficient capital allocation, thus making our overall economy stronger.

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

#47

Post by DaiPlusPlus »

zaphod12 wrote: post #32
cordite wrote: post #15

Earlier quoted context omitted.

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

shorting is identically borrowing. You borrow the stock from someone who owns it, and resell it at the current price. Then later down the road, you buy it back at the lower price and return it to the original owner. You have made money on whatever that difference is. This is not a metaphor, this is how shorting operates. It can easily go over 100% if the person you sell it to also lends it to someone to short (and th…

> Eventually you will need to return that stock you've sold

What happens if you don't?

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

#48

Post by castis »

Hamuko wrote: post #34
anthk wrote: 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'm tired of fake Economics where the value of a company or the product is not made from the real value of it I still don't understand how Tesla is valued so high when they're still figuring out panel gaps.

Neither can anyone else, which I think is why we are where we are right now. TSLA shot up on what I'd always assumed was the equivalent of a feedback loop. I dont understand what will happen if/when that comes down but my blind guess is that it won't be pretty.

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

#49

Post by InTheArena »

Hamuko wrote: post #34
anthk wrote: 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'm tired of fake Economics where the value of a company or the product is not made from the real value of it I still don't understand how Tesla is valued so high when they're still figuring out panel gaps.

They have a fantastic product, and are sitting on a technology that every single car vendor has to sucessfully mimic in the next 8 years, or be out of business. Also 50% YoY growth.

It's overpriced, unquestionably. But the bull case is Amazon.

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

#50

Post by jasonv »

Hamuko wrote: post #34
anthk wrote: 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'm tired of fake Economics where the value of a company or the product is not made from the real value of it I still don't understand how Tesla is valued so high when they're still figuring out panel gaps.

Have you seen the stories about the new Land Rover Defender?

What if "panel gaps" weren't the most notable thing about Tesla's accomplishment, impact and opportunity?

Post reply on HN