Earlier quoted context omitted.
Everything on WSB states this is a bad investment plan and is more to bankrupt Melvin because they tried to bankrupt Gamestop. Short sellers have been using the down turned economy to collapse struggling companies that hire everyday people. What's funny is how the HN community tries to defend the firms they've whined about for years. Is what's going on irrational? Yup. But it pulls back the curtain of what the financ…
Why would shorting Gamestop mean making it to go bankrupt? The falling stock price of a company doesn't cause a company to go bankrupt, the causality is in the other direction. Putting downward pressure on price is useful only if you want to do a hostile takeover.
Statement of SEC Regarding Recent Market Volatility
651–660 of 906 posts
Re: Statement of SEC Regarding Recent Market Volatility
#652Earlier quoted context omitted.
The non-consensus outsiders who make progress have done the reading. They know what the consensus is, they know all the concepts and the jargon, and they disagree about something. Your post can be interpreted to mean "my ignorance is just as good as your knowledge". That's anti-vax thinking and argument. That is not a way to make progress.
I would frame this on two axis: 1) outsider vs establishment 2) expert vs layperson My opinion (see below for how I have defined these) Outsider expert > establishment expert for public ally challenging and overturning norms Any expert > layperson on the basic facts (ignoring statistical aberrations, of course) “Outsider” being unconstrained by norms, not afraid to be cast out of a long established peer group “Expert…
Re: Statement of SEC Regarding Recent Market Volatility
#653Earlier quoted context omitted.
I saw plenty of smart people ahead of institutions and experts on hydroxychloroquine here on HN. They were wrong. Smart people with a good track record are generally called "the experts".
That is the single most frustrating part of the pandemic for me: * There was preliminary evidence from the experts it might work. * At some point Trump got wind of this and mentioned it. * The media, in an effort to portray Trump as wrong, went on a crazy cherry-picking campaign to show HCQ as completely ineffective. "HCQ does not work" was the prevailing sentiment for almost the entire past year because of this, eve…
"They included 30 569 patients with systemic lupus erythematosus or rheumatoid arthritis who were already taking hydroxychloroquine in the 6 months before what was considered as the start of the pandemic in England and 164 068 patients with these rheumatic diseases who did not use hydroxychloroquine. The study found no significant difference in standardised cumulative COVID-19 mortality associated with hydroxychloroquine use (0·23% among hydroxychloroquine users and 0·22% among non-users) with an adjusted hazard ratio of 1·03 (95% CI 0·80–1·33)."
* https://www.acc.org/latest-in-cardiology/clinical-trials/202...
"Among patients exposed to patients with SARS-CoV-2, hydroxychloroquine, administered within a median duration of 2 days as post-exposure prophylaxis, did not reduce the incidence of SARS-CoV-2 or COVID-19 infection within 14 days, compared with placebo (vitamin C)."
* https://www.nih.gov/news-events/nih-research-matters/hydroxy...
"Researchers assessed each patient’s condition 14 days after being assigned to a treatment group. They used a seven-category scale ranging from one (death) to seven (discharged from the hospital and able to perform normal activities). The results showed no significant difference between the hydroxychloroquine and placebo groups. The scientists also found no differences in any of 12 additional outcomes, which included mortality 28 days after assignment to a treatment group or time to recovery. Based on the data, they concluded that hydroxychloroquine was not an effective treatment."
* https://jamanetwork.com/journals/jama/fullarticle/2772921
"Several published rigorous studies have demonstrated similar findings. In the well-conducted clinical trials published to date, hydroxychloroquine has been evaluated in a wide variety of populations, ranging from patients with severe illness2-4 to individuals at risk of severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) infection, in whom the drug was used as primary prophylaxis5; these studies failed to show any beneficial effect of the drug. This raises the question: How did medicine get to the point where so many studies were conducted assessing the possible benefit of hydroxychloroquine, that led to nearly identical findings, and have been published in major journals?"
* https://www.nejm.org/doi/full/10.1056/NEJMoa2022926
"Among patients hospitalized with Covid-19, those who received hydroxychloroquine did not have a lower incidence of death at 28 days than those who received usual care."
* https://www.cdc.gov/mmwr/volumes/69/wr/mm6935a4.htm
"New prescriptions by specialists who did not typically prescribe these medications (defined as specialties accounting for ≤2% of new prescriptions before 2020) increased from 1,143 prescriptions in February 2020 to 75,569 in March 2020, an 80-fold increase from March 2019."
* https://www.aljazeera.com/economy/2021/1/27/oklahoma-attempt...
"Oklahoma tries to return $2m worth of hydroxychloroquine"
Under what circumstances does it work?
Re: Statement of SEC Regarding Recent Market Volatility
#654There’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…
The FOMO is palpable. There's a hurried rush of small investors hoping to turn their meagre savings into a big win, backed by the anxiety that if they don't try then they'll forever regret missing their one and only chance at a comfortable life. This sort of event would be less likely if America's wealth disparity weren't so grotesquely skewed.
RoaringKitty found the stock underpriced in 2019 and then managed to turn 50k into 13M in 1.5 years + and is still holding 22M in stock and calls.
Re: Statement of SEC Regarding Recent Market Volatility
#655There’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…
Re: Subtleties. I disagree. I think a big part of why this whole thing is fascinating is the depth. Yesterday morning, financial press were blathering generalities pinning WSB as market manipulators and calling for regulation to stop them. That is, stop retail investors trading at a scale that moves markets. IE, the stuff that insiders get away with regularly. Between yesterday afternoon and now, millions of people h…
Is the regulator in this case the SEC, the exchange, or some other party?
Re: Statement of SEC Regarding Recent Market Volatility
#656Earlier quoted context omitted.
Here's what oh-so-many people are missing: the gigantic volume in these stocks is no longer coming from the WSB YOLO bros who know they'll lose money but think that's worth it to stick it to hedge funds. That may well be who was getting into the stock on Monday and Tuesday. But now it is people who saw the story on Good Morning America, having never previously heard of WSB or Robinhood, who don't care about hedge fun…
And what about all the people who watch MSNBC and CNBC and Cramer, do they need to stop pushing stops as good or bad too? They tell lots of people "who don't care about hedge funds or any of that, but just got the impression from the news that hey this stock is going way up and that must mean it is a way to make a quick buck" too. None of this could have happened if they weren't shorting GME at 143%+ of float. They w…
In general, shorting stocks is a beneficial action because it helps prevent shares from becoming overvalued.
So, yea, the fact that GME had 143% of its shares shorted is a function of greed. But, no, greed in this case was not a problem so long as GME's share price was fairly valued.
Re: Statement of SEC Regarding Recent Market Volatility
#657A Moment in the Life of an HN Genius: 1. Reads a technical document outside their domain. 2. Feels dumb because they don't have a grasp on any of the concepts. 3. Too busy to use the very internet which some of them probably helped build to magically render learning materials to the screen in front of them at zero marginal cost. 4. Sees the word "manipulation" 5. Substitutes the laymen's definition of "manipulation"…
I am so sick of this 'stay in your lane' attitude. Time and time again, experts have been shown to have consensus opinions which are wildly off from reality. You can almost set your watch to how often an outsider will analyse a situation from first principles and make money off the 'experts', especially in the stock market. You're welcome to your opinion but this appeal to authority is seriously wearing thin. Pretty…
Don't confuse cause and effect. This doesn't mean all anti-consensus ideas are genius and progress. Most are still just junk. See the "all big thinks initially looked like toys" meme for another example.
Re: Statement of SEC Regarding Recent Market Volatility
#658There’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…
The narrative that retail investors have stuck it to hedge funds is laughable. Who do they think is selling counter party is? All they’ve managed to do transfer wealth from one hedge fund to another. And eventually when this pops they have transferred wealth from themselves to other winning hedge funds.
Re: Statement of SEC Regarding Recent Market Volatility
#659Earlier quoted context omitted.
Whatever else happens, Robinhood should not survive this. They clearly violated their customers' trust, so their customers should leave them. And I will be completely unsurprised if when the dust settles it turns out they acted illegally. Also, they suck at lying.
As has been stated elsewhere, it is easier to recover from alienating customers than it is from running afoul of the SEC. They ran a very real risk of being forcibly shut down by regulators if they didn't slow trading.
Oh did the SEC decide to grow a spine?
Re: Statement of SEC Regarding Recent Market Volatility
#660Earlier quoted context omitted.
The non-consensus outsiders who make progress have done the reading. They know what the consensus is, they know all the concepts and the jargon, and they disagree about something. Your post can be interpreted to mean "my ignorance is just as good as your knowledge". That's anti-vax thinking and argument. That is not a way to make progress.
Pretty well captured by that old comedy sketch "The expert" [1] I dare say that most people here on HN have been hit by upper management telling them to do something stupid or impossible. I'd even wager that most have had them get defensive when you try to explain why doing X isn't a good idea. That's effectively what I see when someone criticizes "experts" broadly and generally. I've long accepted that there are man…
Red lines with green ink --> use a thermochromic ink, change the temperature.
7 lines all perpendicular to each other --> sure, in 7+ dimensions.
Solve the climate crisis --> geo-engineering.