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Roaring Kitty to testify on GameStop alongside hedge fund managers

reuters.com

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Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#141

Post by sillysaurusx »

fractionalhare wrote: post #132
sillysaurusx wrote: post #129

Earlier quoted context omitted.

But also because of this specific crowd it seems a good chunk of them are not selling on the idea that if you buy at $300 and sell at $50, you definitely lose. So close! You're almost completely correct, but remember that a loss is considered a win on wsb, because you get to post loss porn. Can't spell trader without retard. https://www.reddit.com/r/wallstreetbets/comments/ljde34/rip/ Your comment is excellent. But I…

> People who act like they know a thing or two tend to get immediately jumped on, which I found quite refreshing. "But will a gamma squeeze happen?' is usually met with "stfu and go read a book rather than drop terms you don't understand." Maybe this is how it was 6 million subscribers ago. Based on my (extensive) reading of WSB the past few weeks, this is no longer true. I've read just about every WSB post (and its…

Valid. :( An influx of millions of people tends to do that.

But! You can preserve the culture yourself. Try to make things a little better when you see problems. It's all we can do.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#142

Post by blablabla123 »

rcxdude wrote: post #82
sillysaurusx wrote: post #50

Earlier quoted context omitted.

One level up, I think! Think of it like a pyramid: the clearinghouse sits at the top, the brokers are in the middle, and the rest of us dirty peasants sit at the bottom where we belong. The clearinghouse covers 95% of trades on Wall Street. So the clearinghouse issued a decree: "we are no longer able to support opening positions for GME, AMC, and KOSS." Since most brokers use this clearinghouse, that means almost all…

Not quite right. There's the DTC (which carries out 95% of the trades), then there's clearing houses (sometimes a seperate entity, sometimes part of the broker: the larger ones all do their own clearing. e.g. Robinhood has their own clearing house), then there's the brokers, then the traders. The DTC said 'we need 100% collateral on these trades' (probably because they viewed there being a significant risk that someo…

> The DTC said 'we need 100% collateral on these trades' (probably because they viewed there being a significant risk that someone, somewhere, would not be able to pay up for the trades they're making in a big way

This sounds like nonsense to me. After all the job of the Clearing House is to make sure the cash is balanced correctly after the transactions. Or realistically speaking a never ending chain of transactions, thus correctly moving the cash behind back and forth in time. It's the secret of the clearing house why they have no problems that their institutional customers have single digit equity ratios (speaking about Basel II/III/...) all the time while most individuals deal with 100% equity ratio. Maybe the more reasonable explanation is that they were overwhelmed by so many small transactions.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#143

Post by sillysaurusx »

IgorPartola wrote: post #139
sillysaurusx wrote: post #129

Earlier quoted context omitted.

But also because of this specific crowd it seems a good chunk of them are not selling on the idea that if you buy at $300 and sell at $50, you definitely lose. So close! You're almost completely correct, but remember that a loss is considered a win on wsb, because you get to post loss porn. Can't spell trader without retard. https://www.reddit.com/r/wallstreetbets/comments/ljde34/rip/ Your comment is excellent. But I…

That’s a really interesting take. The way they seek the lowest common denominator of communication does seem to create a strong sense of community. What I mean by dangerous is this: as more people flock there more capital will enter the market through that gate. And that’s a lot of money to be directed by whims of a fickle and undereducated community that tends to ride whatever is popular at the time. This time they…

Their counterargument would be "How can we have insider knowledge when we have no knowledge?"

I get what you're saying, and it's a valid perspective. But, this gets back to the root of the issue: the older I get, the more it seems like there is a class division in society, and the upper class will do whatever it takes to ensure the lower class stay low.

I hate phrasing it like that, because you can't even say it without sounding like a loon. But think carefully about what you're saying. You're essentially saying that it's dangerous for uneducated, unsophisticated people to band together.

I'm not saying you're wrong. I'm saying, rich people aren't so different, and they are equally dangerous. Moreso, since they have the resources. So I personally find it hard to worry about some people collectively throwing around a few hundreds of millions.

My effort here is to try to convince you -- only you, not whoever's reading this -- to aim your worry "up the chain," so to speak, and to take a hard look at how the rest of the industry acts, and why the structures are in place. It seems false to say that these protection mechanisms are to prevent another 2008 from happening; after all, the 2008 crash wasn't caused by unsophisticated investors.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#144

Post by baq »

sillysaurusx wrote: post #129
IgorPartola wrote: post #123

Earlier quoted context omitted.

The sentiment on WSB from what I can tell is that they can’t coordinate which thread to sticky, let alone which stock to buy. My impression of observing it for a couple of weeks is that this is true. They aren’t capable of truly coordinating anything. Best I can tell, Roaring Kitty/Deepfuckingvalue basically had been buying more and more GME stock for like a year and every month showed screenshots to prove this sayin…

But also because of this specific crowd it seems a good chunk of them are not selling on the idea that if you buy at $300 and sell at $50, you definitely lose. So close! You're almost completely correct, but remember that a loss is considered a win on wsb, because you get to post loss porn. Can't spell trader without retard. https://www.reddit.com/r/wallstreetbets/comments/ljde34/rip/ Your comment is excellent. But I…

that wsb is gone. maybe it'll come back after the dust settles.

it isn't all bad though - old timers migrated to a myriad of other subreddits where quality content is more popular. it may take a while to get back to late 2020 level of memes, though.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#145

Post by SV_BubbleTime »

vinniejames wrote: post #136
sillysaurusx wrote: post #10

It's interesting watching /r/wallstreetbets oscillate between "We did nothing wrong!" to "Well okay, some people were doing some things that were wrong, but hopefully no one will notice." https://www.reddit.com/r/wallstreetbets/comments/lj8djx/day_... (I don't personally believe that anyone did anything that should be prosecuted here, but what I believe is irrelevant to courts.) There is one thing that (in my un-humb…

We don't need a clearing house at all. A simple blockchain fixes this and provides 100% of the settlement service that this company provides.

Replace “blockchain” with “mathy database”, then stop suggesting a database will fix non-database problems.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#146

Post by epistasis »

csours wrote: post #25
sillysaurusx wrote: post #10

It's interesting watching /r/wallstreetbets oscillate between "We did nothing wrong!" to "Well okay, some people were doing some things that were wrong, but hopefully no one will notice." https://www.reddit.com/r/wallstreetbets/comments/lj8djx/day_... (I don't personally believe that anyone did anything that should be prosecuted here, but what I believe is irrelevant to courts.) There is one thing that (in my un-humb…

They didn't change the rules of the game. The volatility and risk changed, thus the collateral requirements changed. Note: I am not a financial professional. I'm not sure if anyone from wsb should be prosecuted; but I will say that if another hedge fund had tried to do what wsb did, it would have been clearly and unambiguously illegal market manipulation. I do think it is quite likely there were some financial profes…

By "what WSB did" are you taking about a short squeeze? Those are not uncommon and no one has ever been prosecuted for it.

Or is there something else that WSB did beyond squeezing the shorts?

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#147

Post by valuearb »

epistasis wrote: post #146
csours wrote: post #25

Earlier quoted context omitted.

They didn't change the rules of the game. The volatility and risk changed, thus the collateral requirements changed. Note: I am not a financial professional. I'm not sure if anyone from wsb should be prosecuted; but I will say that if another hedge fund had tried to do what wsb did, it would have been clearly and unambiguously illegal market manipulation. I do think it is quite likely there were some financial profes…

By "what WSB did" are you taking about a short squeeze? Those are not uncommon and no one has ever been prosecuted for it. Or is there something else that WSB did beyond squeezing the shorts?

Organizing a team to do the short squeeze. Though you can quibble on “organizing” part when it comes to WSB.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#148

Post by valuearb »

zappo2938 wrote: post #74
sillysaurusx wrote: post #44

Earlier quoted context omitted.

I highly recommend https://youtu.be/4RS4JIEVyXM?t=60 -- I didn't understand any of this myself till watching that. (Still don't! But I'm less confused.) My understanding is that the clearing firm informs everyone "Hey, we no longer support opening positions in three stocks specifically: GameStop, AMC, and KOSS." Literally everyone, including Robinhood, was forced to only allow people to sell GME. Somehow Fidelity was…

Fidelity is largest stock holder of GME.

Fidelity is the largest shareholder in many stocks, it has a massive amount of client funds.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#149

Post by valuearb »

sillysaurusx wrote: post #44
voiper1 wrote: post #36

Earlier quoted context omitted.

If they required 100% collateral, why did that mean Robinhood stopped trades? Why couldn't they allow trades with 100% settled funds?

I highly recommend https://youtu.be/4RS4JIEVyXM?t=60 -- I didn't understand any of this myself till watching that. (Still don't! But I'm less confused.) My understanding is that the clearing firm informs everyone "Hey, we no longer support opening positions in three stocks specifically: GameStop, AMC, and KOSS." Literally everyone, including Robinhood, was forced to only allow people to sell GME. Somehow Fidelity was…

This is not true, you could buy GME at almost every broker except a handful too thinly capitalized to support their volume of GME trades.

Re: Roaring Kitty to testify on GameStop alongside hedge fund managers

#150

Post by wungsten »

molticrystal wrote: post #92
sillysaurusx wrote: post #10

It's interesting watching /r/wallstreetbets oscillate between "We did nothing wrong!" to "Well okay, some people were doing some things that were wrong, but hopefully no one will notice." https://www.reddit.com/r/wallstreetbets/comments/lj8djx/day_... (I don't personally believe that anyone did anything that should be prosecuted here, but what I believe is irrelevant to courts.) There is one thing that (in my un-humb…

>Gill getting rich Did Gill sell? I thought he didn't convert his options yet and was still holding.

He continued to post daily updates of his held options until I believe 5 February, but I'm not sure what he did after that. I'm not sure if anyone but him knows, since that was around the time he was summoned by this committee.

As of that last update he was still holding most of his options, but it is believed that he had converted at least some of them and profited more than $10 million.

I don't have a better source than random Reddit comments, though.

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