General / Off-Topic Gamestop and Wall Street

[VR] optimal_909

[VR] optimal_909
I am a somewhat active retail investor, i.e. I'm managing my savings as it is more satisfying than leaving on my bank account especially as I get my income in mickey mouse currency.

I consider my savings as owned by my kids, therefore I'm usually pretty conservative with my moves and a fairly large portion of the portfolio is in gold.
I used to laugh on WSB, but the short squeeze arose my curiosity and got in with a bit to play it - the events unfolding the past two days made me furious so I actually bought in to support the cause. I hope the political pressure will be big enough to make an example on some of the fat cats who had the courage to rig the trading so blatantly, out in the open for everyone to see...

Morbad said:
With no sellers this valuation is even more illusionary than the pump. Looks good on a balance sheet, but markets will need to open up to see if it sticks. Right now they are hoping that people will get impatient and sell, so the funds that influence these exchanges can cover their shorts.
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It seems people didn't bend over and actually holding on to their positions (trading volume was really low once retail channels closed) - which is admirable!
 

Robin of Spiritwood

Robin of Spiritwood
One of the spicy little things, is Elon Musk's input.
Musk had a rough go with Tesla getting shorted in the past, so he is not a fan of industry short sellers.

Before:
markets.businessinsider.com

GameStop explodes another 157% higher after Elon Musk's 'Gamestonk' tweet extends Reddit-driven short squeeze

The Tesla founder posted a link to the popular subreddit WallStreetBets, members of which have piled into GameStop's soaring stock.
markets.businessinsider.com markets.businessinsider.com

Now:
'Absolutely': Elon Musk backs AOC's call to hold hearings on Robinhood barring GameStop purchases

I guess revenge is best served cold. This kind of thing really doesn't happen often, and it's good movie material. Is it a Ponzi scheme? Sure. And just like every frantic buying frenzy that ever happened it will crash. The difference here is that it's a cynically self-aware Ponzi scheme.
 

Morbad

Morbad
I still can't get over the fact that a brokerage firm which named itself Robinhood and whose schtick up until this point has been some "power to the people" farce, is doing everything they can get away with (and probably quite a bit they can't) to functionally steal from the poor (well the relatively poor, not the actually poor, who were never allowed to have enough money to play with anyway) in order to give to the rich.

To make it even better, the richest person in the world (Elon "I have two-hundred billion dollars, just try to out borrow me now" Musk), the poster child for progressive liberalism (AOC), and Ben Shapiro (yes, that Ben Shapiro), are, in one of the most unlikely convergences of goals, all calling for Robinhood's proverbial head on a pike...prompted by some movement started by a bunch of Reddit-bros.

No one could write satire like this, it would be too incredible.

[VR] optimal_909 said:
It seems people didn't bend over and actually holding on to their positions (trading volume was really low once retail channels closed) - which is admirable!
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If enough of them can hold out, the only sales we'll see are from short sellers trying to short harder--borrowing more shares to sell to drive prices down to try to prompt others to sell cheap--and they'd just be digging their holes deeper.

Robin of Spiritwood said:
And just like every frantic buying frenzy that ever happened it will crash. The difference here is that it's a cynically self-aware Ponzi scheme.
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A Ponzi scheme implies fraud. No one buying into GME at it's highs expects to get out with a real profit, so it's hard to call it a Ponzi scheme at this point.

Fund managers are fuming that an anti-establishment ideology is driving trades that don't conform to the unwritten rules of a system that they helped build explicitly to plunder markets for their own profit.
 
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Hooplah

Hooplah
Many thousands of small players invested in GameStop and took on the billionaires trying to short sell their stock to zero value. Their stock went up in value at an amazing rate. The billionaires lost big then brokers shut down trading so that the billionaires could get out of the short sell game. That was illegal manipulating the stock market not allowing trading for the last 24 hours.

No worry as short selling stocks now has a lot of brokers playing the game on the other side and making a lot of money doing it for their customers. The result is trying to take out a company like GameStop solely for profit is now very risky. Place your bets.

I laughed all the way to the bank gaining a small fortune. A few more of these and I'll park a LearJet 60 at my local airport. I never go anywhere more just loving looking at this awesome machine! It is only money.
 
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[VR] optimal_909

[VR] optimal_909
Hooplah said:
Many thousands of small players invested in GameStop and took on the billionaires trying to short sell their stock to zero value. Their stock went up in value at an amazing rate. The billionaires lost big then brokers shut down trading so that the billionaires could get out of the short sell game. That was illegal manipulating the stock market not allowing trading for the last 24 hours.

No worry as short selling stocks now has a lot of brokers playing the game on the other side and making a lot of money doing it for their customers. The result is trying to take out a company like GameStop solely for profit is now very risky. Place your bets.

I laughed all the way to the bank gaining a small fortune. A few more of these and I'll park a LearJet 60 at my local airport. I never go anywhere more just loving looking at this awesome machine! It is only money.
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Good for you, I wasn't that brave!
However, I am now heavily considering in cutting my 'legacy' positions pre-market as unrestricted trade (IBKR just allowed buying them again) may bring down Citadel and who knows, it could result in a Lehman-like ripple effect. At the very least a major correction is very much likely IMHO, partly due to funds trying to cover their losses.
 

Agony_Aunt

Agony_Aunt
One funny thing is when you study finances and the markets you are taught that the market is rational.

That one always confused me because its people working the market, and people are anything but rational.

But the best story i found in relation to shares trading was where someone decided to prove stock managers did not provide the value they claimed in managing your stocks. So he basically got his dog to pick the stocks he should invest in. The dog outperformed the average for stock managers. :D
 

Arry

Arry
Agony_Aunt said:
One funny thing is when you study finances and the markets you are taught that the market is rational.

That one always confused me because its people working the market, and people are anything but rational.

But the best story i found in relation to shares trading was where someone decided to prove stock managers did not provide the value they claimed in managing your stocks. So he basically got his dog to pick the stocks he should invest in. The dog outperformed the average for stock managers. :D
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My 'pension' has lost money, two years in a row and yet, the company handling it, is still charging me a fee. I am not allowed to take the money and 'invest it myself'. I could have made more, buying gold, or even Chinese stocks, but no. I just have to watch the likes of Blackrock and Standard life, feather their own nests.
 

Agony_Aunt

Agony_Aunt
Arry said:
My 'pension' has lost money, two years in a row and yet, the company handling it, is still charging me a fee. I am not allowed to take the money and 'invest it myself'. I could have made more, buying gold, or even Chinese stocks, but no. I just have to watch the likes of Blackrock and Standard life, feather their own nests.
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I became convinced all pensions are ponzi schemes a long time ago. They don't manage the money well, they just take their cut and rely on the next generation to pay for the current generation.

That's why pension funds tend to panic whenever there is an indication that birth rates are dropping.
 

Arry

Arry
Filthymick420 said:
It's a shame it took so many this long to figure it out. My stance is never trust someone looking to use your money for their profit.
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This is not a new thing. It has been happening for 100 years. Deregulation demanded by the markets, lead to booms and then (as will always be the case) bust. Regulations are put in place afterwards. Then the market place, works around the regulations and lobby to have them weakened and then we have, another boom and of course, bust. This has been the story, since 1928. A few greedy men, gambling with others peoples money, with no real risk to themselves.
 

[PS4] Filthymick420

[PS4] Filthymick420
Arry said:
This is not a new thing. It has been happening for 100 years. Deregulation demanded by the markets, lead to booms and then (as will always be the case) bust. Regulations are put in place afterwards. Then the market place, works around the regulations and lobby to have them weakened and then we have, another boom and of course, bust. This has been the story, since 1928. A few greedy men, gambling with others peoples money, with no real risk to themselves.
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May have been happening for 100 years but I'm only 38 lol. Also I never said it was new. I'm just not a sucker to let others gamble with my money. If I'm going to lose my money I'd like it to be my fault.
 

znôrt

znôrt
Morbad said:
Any system that doesn't allow bad investments doesn't allow stock markets.
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the traditional core definition of stock market, as an instrument for the community to back and fund interesting or valuable enterprises, which in turn makes prosperity and bigger scale achievements possible, isn't that bad.

something very fishy is happening though when actors are betting on enterprises getting broke. that's a gambling house that has lost all reference to the real economy. and if people want to gamble, be my guest, but don't call it stock market. it shouldn't be that hard to regulate, which suggests that there is really no will to regulate it.
 

Arry

Arry
Filthymick420 said:
May have been happening for 100 years but I'm only 38 lol. Also I never said it was new. I'm just not a sucker to let others gamble with my money. If I'm going to lose my money I'd like it to be my fault.
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I didn't have much choice, the pension scheme was set up by my employer. Said schemes were created by George Osborne, who was the chancellor of the exchequer at the time. Who now works for Blackrock as a part time advisor, for an annual salary of £650.000 for working 1 day a week.
 

[PS4] Filthymick420

[PS4] Filthymick420
Arry said:
I didn't have much choice, the pension scheme was set up by my employer. Said schemes were created by George Osborne, who was the chancellor of the exchequer at the time. Who now works for Blackrock as a part time advisor, for an annual salary of £650.000 for working 1 day a week.
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🔱&🔥
 

Morbad

Morbad
znôrt said:
the traditional core definition of stock market, as an instrument for the community to back and fund interesting or valuable enterprises, which in turn makes prosperity and bigger scale achievements possible, isn't that bad.
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Perhaps not, but it's also not very representative of reality. I'm not even sure how a modern market would be constructed that wouldn't rapidly turn into a well-gamed system for the profit of the few at the expense of the rest...not without a radical reworking of the fundamental nature of modern finance.

znôrt said:
something very fishy is happening though when actors are betting on enterprises getting broke. that's a gambling house that has lost all reference to the real economy. and if people want to gamble, be my guest, but don't call it stock market. it shouldn't be that hard to regulate, which suggests that there is really no will to regulate it.
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Gambling is great for the house...which in this case are financial service corporations and the governments that sell themselves to them. The regulation is already there, but it's goal isn't to create fair and free markets, it's to create and maintain a global kleptocracy.

I'm sure these events will prompt new regulations, but I have my doubts about who will ultimately benefit from them.
 
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