Reddit's GameStop, AMC surge is the new Occupy movement • Hacker News Board

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

#51

Post by minitoar » Thu, Jan 28, 2021, 3:58 PM UTC

hospadar wrote: post #38

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?

I see the subletting analogy, but there's a big difference between subletting an apartment over the summer to minimize your losses (usually for ≤ your rent) and renting all the apartments in manhattan, then subletting them for profit after you corner the market. The former seems fine, and yah, I guess I do think that the latter should be illegal, because it only benefits some wealthy jerk who can afford to corner a m…

Again, it’s not an individual or even one entity doing it. It’s several funds independently doing this.

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

#52

Post by wlesieutre » Thu, Jan 28, 2021, 3:58 PM UTC

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.

Depending on why you're looking at a Tesla there may not be another car that you could buy with similar price and performance. They don't have the competitive pressure on every quality detail compared to most other automakers.

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

#53

Post by sokoloff » Thu, Jan 28, 2021, 3:58 PM UTC

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?

It's not at all clear to me that 1979 is even the best reference year to pick. It looks to me like the trend lines broke in 1973-1975, but by the nature of this type of chart, careful choice in starting year can provide a chart that suggests a different break point. (It's probably better to think of these as "fuzzy" lines, which are 10% starting in each of 1946, 1947...1955.)

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

#54

Post by this_user » Thu, Jan 28, 2021, 3:59 PM UTC

The only thing more ridiculous than the rise in the GME stock are these attempts to frame this is some sort of culture war. All this is is a bunch of people on an online forum trying to make a quick buck; it's not some grand statement against Wall St. or whatever.

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

#55

Post by bigwavedave » Thu, Jan 28, 2021, 3:59 PM UTC

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…

Not the parent or even a participant in this thread, but thank you- this is the first time I've ever been given an explanation for shorting that is clear, concise, and understandable to me.

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

#56

Post by vsareto » Thu, Jan 28, 2021, 3:59 PM UTC

ceejayoz wrote: post #24

agildehaus wrote: post #17

Earlier quoted context omitted.

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.

Based on how people acted during the pandemic, these people will be more than willing to be bagholders, constantly deny they are bagholders, and constantly deny anyone else is a bagholder.

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

#57

Post by bertylicious » Thu, Jan 28, 2021, 3:59 PM UTC

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?

Neoliberalism happend.

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

#58

Post by altgeek » Thu, Jan 28, 2021, 4:00 PM UTC

So, Wall Street lives off of skimming fees from the retail investor, and now they cry when the masses cause them pain?

Won't anyone shed a tear for the masters of the universe?

Aren't these 2/20 "investment managers" supposed to hedge their positions with other derivatives (i.e. options.) ? So much for risk managers and the VaR metric (I know that has fallen out of favor since the last crisis' 10 sigma event.)

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

#59

Post by Raidion » Thu, Jan 28, 2021, 4:00 PM UTC

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.

I mean, there are a lot of good reasons to question Tesla's valuation, but the panel gaps is a weird one. Tesla has accomplished putting together the best mass market electric vehicle and selling it for a profit (with government incentives, albeit). There are a LOT of people who can figure out panel gaps. There are not a lot of people who can figure out how to make the economics and supply chain for electric cars work. The fact that they haven't made that a priority speaks to Tesla's priorities, not their abilities.

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

#60

Post by ajkjk » Thu, Jan 28, 2021, 4:00 PM UTC

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.

Tesla is one of the few modern companies whose value actually makes sense to me. They actually make something! that people want to buy! that's way better than most of ad-tech which seems like a multi-layered pyramid scheme.