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GameStop Is Rage Against the Financial Machine

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Re: GameStop Is Rage Against the Financial Machine

#981

Post by rory »

FabHK wrote: post #838
rory wrote: post #755

Earlier quoted context omitted.

It seems "the long run" in the context of this quote is getting longer over the past 20 years (or more), with high multiples and companies that won't return the capital invested in them for many, many years, even in optimistic scenarios. Does that mean the weighing part is becoming less important, and the voting part more so?

I'd say that it's always been about the long run; however, with (real) rates around, say, 5%, as in the 90s, what matters for the present value is mostly within the next 20 years. With rates about 1%, what happens after the next 50 years still determines more than half of your PV.

Do investors really think they can predict the income of a company in the 2070s with ANY degree of accuracy? None of the top five companies by market cap even existed 50 years ago.

Re: GameStop Is Rage Against the Financial Machine

#982

Post by jariel »

throw0101a wrote: post #506
admax88q wrote: post #315

Earlier quoted context omitted.

> 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…

> 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. So basically like almost every other trade? Every buyer needs a seller and vice versa. If you're active in the market, why do you think you're right on any particular trade and the person on the other end is wrong?† * If you're buying, why is the other…

"So basically like almost every other trade? Every buyer needs a seller and vice versa."

No, not at all.

It's well known that this stock is massively overvalued.

It's a mania, or a crowd-induced Ponzi scheme.

This is different than investors predicting outcomes based on fundamentals or their view of growth.

The plebes will be left holding the bag and probably lose much more money than the banks and it will affect them more greatly.

Re: GameStop Is Rage Against the Financial Machine

#983

Post by ironyman »

smabie wrote: post #917
cbozeman wrote: post #164

Earlier quoted context omitted.

No it isn't. You know why front running isn't illegal? Because it keeps happening and companies keep getting fined for it. A "law" that allows you a merely pay a fine isn't a law, its a revenue-generating procedure. Murder is illegal. You can't pay $500,000 to the authorities and then go on about your business. For a law to have any weight, you have to be inconvenienced regardless of your financial status.

What fines? No real firms front run. Market makers are not front running your orders. This does not happen

There's a lot of victimhood mentality going on right now. Everything is being blamed on Wall Street and market makers 'ripping off the little guys'. I believe you 100% but sadly you're not going to get through to them.

Re: GameStop Is Rage Against the Financial Machine

#984

Post by xwdv »

jrochkind1 wrote: post #610
xwdv wrote: post #559

Earlier quoted context omitted.

Because at the beginning there is no evidence the plan will work, and you could very well just be blowing a bunch of money. It’s like the people who mined Bitcoin very early and stashed them in their hard drives. Once the stock picks up steam though, it attracts people who purely just want to make a fast buck, and less true believers.

Oh, anyone now could very well be blowing a bunch of money too, of course. But you think making a gamble that seems like less of a sure thing is less greedy than if you think it's a sure thing? The more of a sure thing you think it is the greedier you are? That's not really clear to me. But maybe it's really about the "true believer" thing. You think people in later were only there to make money, but those in earlier…

The plan was to choke the big hedge funds until they went bankrupt and died.

Re: GameStop Is Rage Against the Financial Machine

#985

Post by esoterica »

cwhiz wrote: post #972
esoterica wrote: post #224

Earlier quoted context omitted.

> 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.

You forgot to mention Jeffrey Epstein, Bill Gates, George Soros, the pope, and the lizard people.

But seriously, what did the White House and SEC do?

Re: GameStop Is Rage Against the Financial Machine

#986

Post by throw0101a »

jariel wrote: post #982
throw0101a wrote: post #506

Earlier quoted context omitted.

> 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. So basically like almost every other trade? Every buyer needs a seller and vice versa. If you're active in the market, why do you think you're right on any particular trade and the person on the other end is wrong?† * If you're buying, why is the other…

"So basically like almost every other trade? Every buyer needs a seller and vice versa." No, not at all. It's well known that this stock is massively overvalued. It's a mania, or a crowd-induced Ponzi scheme. This is different than investors predicting outcomes based on fundamentals or their view of growth. The plebes will be left holding the bag and probably lose much more money than the banks and it will affect the…

Just because GME-as-ownership-unit may be overvalued, does not necessarily mean it is overvalued for GME-as-contract-closure-instrument.

If you want to focus on GME-as-ownership-unit, as a share in a retail business, that's perfectly valid. But that's not the only perspective.

Re: GameStop Is Rage Against the Financial Machine

#987

Post by jariel »

throw0101a wrote: post #986
jariel wrote: post #982

Earlier quoted context omitted.

"So basically like almost every other trade? Every buyer needs a seller and vice versa." No, not at all. It's well known that this stock is massively overvalued. It's a mania, or a crowd-induced Ponzi scheme. This is different than investors predicting outcomes based on fundamentals or their view of growth. The plebes will be left holding the bag and probably lose much more money than the banks and it will affect the…

Just because GME-as-ownership-unit may be overvalued, does not necessarily mean it is overvalued for GME-as-contract-closure-instrument. If you want to focus on GME-as-ownership-unit, as a share in a retail business, that's perfectly valid. But that's not the only perspective.

That's actually a good point, at the same time, in the bigger picture, it's market chaos and nobody wants it.

Basically, mobs are fighting against hedge funds using random companies as battle grounds - the markets are there to support those companies, not destroy them.

So what we are seeing is kind of an inflection point that the system wants to tamp down.

It's actually pretty distressing to see how many intelligent people think they are doing some kind of good here, like burning down a few stores to force the owners to leverage some kind of fire insurance policy to destroy the 'evil insurers'.

Re: GameStop Is Rage Against the Financial Machine

#988

Post by cratermoon »

joseph_grobbles wrote: post #696
ClumsyPilot wrote: post #692

Earlier quoted context omitted.

"I highly doubt you're going to find some Joe Nobody -- you're going to find some very well financed, planned player." Such as? It's been a week and thousands of reporters and traders can't identify a whale moving billions? Or are you just making this up?

"Or are you just making this up?" What a funny retort. Wait, are you just making up the notion that we can "identify" whales moving billions? Do we check the central trade registry and cross reference with billionaires? Do you know how any of this works? Or are you just making this up? Unless you're the SEC, this isn't possible. Reporters can't do that, so if you're taking the absence of that evidence as evidence, yo…

> Reporters can't do that

Maybe the should be able to, then.

Re: GameStop Is Rage Against the Financial Machine

#989

Post by vkou »

Anther wrote: post #970
vkou wrote: post #609

Earlier quoted context omitted.

What if the act of telling people in the front half caused a stampede, which trampled five people to death, knocked a candle over, and burned the whole theatre down? The thing about bank runs is that if everyone , everywhere thinks there's a bank run happening, this will actually cause the financial system to collapse. It's a self-fulfilling prophecy. But if most people don't think a bank run is happening, then the s…

Rather like the recent runs on supermarkets. Everyone thought there would be a shortage of goods, and so they created one.

There was an actual shortage, though, because people's needs changed. Nobody wanted to go to the grocery twice a week when most of the variables of the pandemic were unknowns. Nobody needed commercial toilet paper, but everyone started needing residential toilet paper. Some supply chains for staples were disrupted. (Meatpackers in NYC all getting COVID...)

Many supply chains are still disrupted, relative to changes in demand, just try buying a GPU right now.

Re: GameStop Is Rage Against the Financial Machine

#990

Post by [deleted] »

Uehreka wrote: post #554
SomewhatLikely wrote: post #422

Earlier quoted context omitted.

The daily volume is higher than the total number of shares for the company. Lots of people are locking in their gains. Of course someone else is taking their place at an even higher cost basis.

In the end I have a feeling it’ll be something like: the first 1% to invest will make a fortune, the first 10% to invest (who are selling now and maybe tomorrow) will be able to pay off student loans, credit card debt or maybe buy a car, but then the other 90% will either lose small or lose big. I’d guess that in the future if you run into someone who traded GME this week, you’re more likely to meet a loser than a wi…

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