11–20 of 66 posts
Gamestop made me think of this. The moral of the story is that when you beat Wall Street at their own game, they will change the rules on you so they win anyway. Something to be cautious about in the current situation.
They didn’t change the rules. The rules are clear that they’re allowed to change the rules anytime they want. That’s one of the rules.
> The stock went up wildly, reaching a high of 124. At this point the Exchange suspended further trading & postponed the short sellers' delivery deadline. This resulted in eventual bankruptcy for Saunders & he was finally forced to step out of the Pigp]y [sic] Wiggly Company. Bizarre. What grounds did they have for doing this? Prima facie there are some similarities between this and the GME situation, I wonder if the…
Back-room deals are the backbone of America, from Politics to Business.
Whether it was a direct $$$ bribe or a call-in to the good old boys, we will probably never have proof.
Gamestop made me think of this. The moral of the story is that when you beat Wall Street at their own game, they will change the rules on you so they win anyway. Something to be cautious about in the current situation.
When the market is in danger, it’s foolish not to act to stabilize it. If robinhood collapsed into receivership, the outcome would be far worse for their customers.
> The stock went up wildly, reaching a high of 124. At this point the Exchange suspended further trading & postponed the short sellers' delivery deadline. This resulted in eventual bankruptcy for Saunders & he was finally forced to step out of the Pigp]y [sic] Wiggly Company. Bizarre. What grounds did they have for doing this? Prima facie there are some similarities between this and the GME situation, I wonder if the…
I wish there were more details about how this resulted in bankruptcy. Was it an eventual lack of ability to pay for the interest on the loan he used to borrow the stock, or did he fail to corner it, so other sellers ended up letting the shorters out of their position, and his shares plumetted?
https://en.m.wikipedia.org/wiki/Clarence_Saunders_(grocer)#W...
tldr - the short sellers were given five days to find the necessary shares (compared to the standard 24 hours). That's a lot of time in 1923, and enough shares came in to get them out of the corner.
Clarencr Saunders (the Piggly man himself) was left with no way to repay the loan that allowed him to set up the squeeze and was forced to walk away from a truly revolutionary business he had built.
Read Business Adventures, as mentioned in other comments. Cannot recommend enough.
Earlier quoted context omitted.
Back-room deals are the backbone of America, from Politics to Business.
Yeah, I don't think it's too much of a mystery. It's almost certain that Wall Street "suggested" that someone at the exchange make this happen. Whether it was a direct $$$ bribe or a call-in to the good old boys, we will probably never have proof.
Gamestop made me think of this. The moral of the story is that when you beat Wall Street at their own game, they will change the rules on you so they win anyway. Something to be cautious about in the current situation.
Clearly the moral path is to let the market fail and implode. When the market is in danger, it’s foolish not to act to stabilize it. If robinhood collapsed into receivership, the outcome would be far worse for their customers.
Doubt that, because given the overall politically charged sentiment around the squeeze, they would have declared Robinhood's demise a victory as well.
Gamestop made me think of this. The moral of the story is that when you beat Wall Street at their own game, they will change the rules on you so they win anyway. Something to be cautious about in the current situation.
>they will change the rules on you so they win anyway Are you referring to how several popular brokerages prevented customers from opening new positions? That's due to them unable to fulfill deposit requirements on such volatile stocks, not because of some conspiracy by wall st to "change the rules on you so they win anyway". see: https://www.bloomberg.com/opinion/articles/2021-01-29/reddit... , under heading "Why di…
And the Interactive Brokers chairman is explicit about why he chose to block buys.
As he says repeatedly in the episode, "Wall Street always changes the rules."
https://thereformedbroker.com/2021/01/29/pigs-get-slaughtere...