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Statement of SEC Regarding Recent Market Volatility

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Re: Statement of SEC Regarding Recent Market Volatility

#271

Post by ramraj07 »

dkrich wrote: post #75

There’s a long history of similar occurrences that follow along a common line: whatever appears to support individual investors will be the path taken by politicians and regulatory bodies. Right now it appears that the public wants to be able to trade on their terms because there is this narrative that the little guy is finally sticking it to the big bad hedge funds. In reality there is probably very little truth to…

Many might be FOMOing, but few want to be told that they're too dumb to be given this power. Clearly the experts themselves don't know when they bite too much (as seen in 2008) lets spare the common adult some decency and allow them to bankrupt themselves if they wish to do so. America was a great place precisely because of this freedom

Re: Statement of SEC Regarding Recent Market Volatility

#272

Post by [deleted] »

throwaway4good wrote: post #22
gjsman-1000 wrote: post #3

"The Commission will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities. In addition, we will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is prohibited by the federal securities laws. Market participants should be careful to avoid such activity." This shoul…

"Abusive or manipulative trading activity that is prohibited by the federal securities laws." Is that aimed at "professional hedge funds" or self-proclaimed "autists" in an internet forum?

[deleted]

Re: Statement of SEC Regarding Recent Market Volatility

#273

Post by [deleted] »

enraged_camel wrote: post #210
dagw wrote: post #167

Earlier quoted context omitted.

The big hedge funds are apparently losing money (billions!) A few hedge funds (of different sizes) are indeed losing billions. A few other hedge funds have taken the opposite side of this bet and are making money. The vast majority of hedge funds have no position in this stock and are completely unaffected. In addition a bunch of HFT shops and similar making a lot money off the volatility and order flow all this has…

I mean, some hedge funds are making money, sure. But the point is that, collectively , billions of wealth have so far been transferred from institutional investors to regular investors.

[deleted]

Re: Statement of SEC Regarding Recent Market Volatility

#274

Post by numair »

fallingknife wrote: post #182
numair wrote: post #107

Okay kids, story time. After the crash of 2008, I spent some time working with Dick Fuld. Yes, the former head of Lehman Brothers. Yes, the one people describe as “disgraced,” among other terms. Here’s the irony, though — Dick was one of the only people I encountered at that level of business/finance who wasn’t a scumbag. Unlike so many virtue-signaling Silicon Valley darlings, the guy behind the curtain was an honor…

> “lol idk sorry Dick but we’re just gonna let you go and let the Fed bail the rest of us out sorry bro lol.” Like really. That’s how it went behind those closed doors in the lairs of the lizards that control the universe. Says Dick Fuld. I doubt that's true, though, because at the time Lehman was going under, they didn't know that all the other banks were going with them. Remember, the bailouts didn't come until a f…

The unforeseen side effects of what was meant to be a very orderly and master-planned wind-down of one bank for the benefit of all the others — that speaks to the exact point I was making about the ridiculous notion that these are mature, all-knowing, all-wise adults.

As far as good and bad people, well... The senior $LARGE_CONSUMER_BANK Vice-President who told me how much he loved the profit he was making off the overdraft fees he thought were “an honest service” to his poorest customers, with a huge smile on his face, was definitely a lot more evil than Dick.

But look, if you’ve had direct experiences with a bunch of the CEOs and senior execs at these firms, feel free to provide a counter! If you’re basing things on journalist accounts, however, you’re going to be in for a surprise when you learn who pays their bills and takes them on trips...

Re: Statement of SEC Regarding Recent Market Volatility

#275

Post by fjabre »

Miner49er wrote: post #165
dkrich wrote: post #75

There’s a long history of similar occurrences that follow along a common line: whatever appears to support individual investors will be the path taken by politicians and regulatory bodies. Right now it appears that the public wants to be able to trade on their terms because there is this narrative that the little guy is finally sticking it to the big bad hedge funds. In reality there is probably very little truth to…

> Right now it appears that the public wants to be able to trade on their terms because there is this narrative that the little guy is finally sticking it to the big bad hedge funds. In reality there is probably very little truth to this. The fact that buying was limited yesterday is evidence that the little guy is actually winning here. Trading was stopped to save the hedge funds, because if they go under or lose to…

This is not David vs Goliath. This is Goliath vs Goliath. A reddit mob armed with Macbook Pros and iPhone 11s does not equal 'the little guy.'

Re: Statement of SEC Regarding Recent Market Volatility

#276

Post by seabird »

realmod wrote: post #187
adriancr wrote: post #139

A few rants that i tried answering to someone before him removing post. Free speech is allowed. Prosecuting people for free speech is impossible. A bunch of imbeciles posting on forums is similar to a bunch of imbeciles on CNBC arguing that price is too high. A hedge fund with 12 billion dollars shorting 140% of a stock and then using media to drive price to 0 is illegal. Also more then idiotic since they caused the…

I also believed that most of the shorts were naked, but the director of S3partner clearly explained how this was not the case. One stock can be shorted multiple times which is what causes the SI% to be over 100%. A lends to B, B sells to C, C lends to D and so forth. Two shorters (B,D) but only 1 original stock. And Robinhoods closure of the trade seems reasonable in retrospect as well. If the clearing house required…

I'm not a domain expert, but it would seem that whether or not something was sold naked is ultimately determined in the instant that you are obligated to deliver -- not doing so is a Failure to Deliver, which is when your problem actually starts.

The SEC has 170k recorded FTDs for GME in the second half of December 2020: https://www.sec.gov/data/foiadocsfailsdatahtm

GME has been on the NYSE Threshold list for months: https://www.nyse.com/regulation/threshold-securities

Multiple WSB users were aware of this public data and that GME had high FTD rates in significantly more favourable circumstances at least as early as October 2020: https://old.reddit.com/r/wallstreetbets/comments/j0ckgf/reg_... https://old.reddit.com/r/wallstreetbets/comments/jbvwek/fail...

There was no reason to not be ass-naked or close to it on the high end of GME call contract writing a few months ago. They've probably covered (at least partially) by now, but that doesn't mean it hasn't happened.

Re: Statement of SEC Regarding Recent Market Volatility

#277

Post by adrr »

enraged_camel wrote: post #210
dagw wrote: post #167

Earlier quoted context omitted.

The big hedge funds are apparently losing money (billions!) A few hedge funds (of different sizes) are indeed losing billions. A few other hedge funds have taken the opposite side of this bet and are making money. The vast majority of hedge funds have no position in this stock and are completely unaffected. In addition a bunch of HFT shops and similar making a lot money off the volatility and order flow all this has…

I mean, some hedge funds are making money, sure. But the point is that, collectively , billions of wealth have so far been transferred from institutional investors to regular investors.

Not it hasn’t. Retails hasn’t yet sold and the market doesn’t have the demand to hold sell off at the current price. The billions paid by hedgefunds went as pure profit to the big FIs like blackrock. When all this done and financial disclosures come out. The winners will be the big financial firms who have already made their money selling stocks at this inflated price.

Re: Statement of SEC Regarding Recent Market Volatility

#278

Post by iso1631 »

teeray wrote: post #228
ycombigator wrote: post #180

Earlier quoted context omitted.

Many just want to screw the hedge funds, finally it's their blood in the water.

Absolutely. Many view this as a donation to a political cause that has tangible outcomes. The ROI is watching hedge funds implode.

I bunged in $50 into GME this morning because why the hell not. If pubs ever reopen I can spend another $50 on a round of drinks with mates and legitimately say "we took on the wall street parasites". The truth doesn't matter, the end doesn't matter, the tale is the reward.

Re: Statement of SEC Regarding Recent Market Volatility

#279

Post by robocat »

adriancr wrote: post #139

A few rants that i tried answering to someone before him removing post. Free speech is allowed. Prosecuting people for free speech is impossible. A bunch of imbeciles posting on forums is similar to a bunch of imbeciles on CNBC arguing that price is too high. A hedge fund with 12 billion dollars shorting 140% of a stock and then using media to drive price to 0 is illegal. Also more then idiotic since they caused the…

> A hedge fund with 12 billion dollars shorting 140% of a stock

I am fairly sure that one fund shorting 140% would have the SEC on your back (that would count as market manipulation).

A comment somewhere mentioned that Melvin had shorted 14%.

Does anyone have some facts here?

Re: Statement of SEC Regarding Recent Market Volatility

#280

Post by electrondood »

richardwhiuk wrote: post #203
Dirlewanger wrote: post #143

Earlier quoted context omitted.

>nobody blames the speculators The hedge funds are the speculators in this case. They're playing a dangerous game where you can short more stock than what actually exists. Why this is allowed? Who the fuck knows.

It's quite difficult to stop without blocking all shorts.

Why? My broker doesn't let me trade unsettled funds, even though I've made a sale and they're "in my account." How hard would it be to create a restriction that says you're not allowed to double-loan the obligation to return a share borrowed in a short sale?
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