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This is a once in a lifetime historical event. It’s insane.
At least 1 hedgefund has gone bankrupt, thanks to a group of average joes on Reddit. By the end of the week, there will be a line of bankruptcies. More
Melvin Capital gave up yesterday and closed its short position. More
Where did I put that violin?
As I said earlier:
Hedge funds are allowed to sell shares they don’t actually own, called short selling, to drive a stock’s price down (due to more supply than demand) artificially.
– Wall Street and SEC: This is legitimate
Web teams with stimulus checks buy shares with their free cash, to drive a stock’s price UP (due to higher demand) artificially.
– Wall Street and SEC: This is a blasphemous distortion of the market – people should pay damages and go to jail.
Picture of a Flash Mob looting of Wall Street…
Fuck Wall Street.
#FakePresident
This is the joe6pak’s of our country sticking it up the ass of the hedge fund, greedy bastards, out there. And now the elites are banding together to shut these guys down. I read that a whistle blower from one fund is claiming that even the White House is interjecting themselves in to this. There might be real real laws being broken, but not to worry, the fbi will take of this little misunderstanding.
Market makers are buying Maker’s Mark !
I thought short buying, which is similar to the current situation (putting up pennies on the dollar to buy stock) is what caused the Depression. So why is it still allowed? I thought it was made illegal.
Or is it allowed when the big guys do it?
Now that they have shut down those stocks I wonder if someone will find another one to keep them chasing their tails.
This contains the supposed whistleblowers statement.
https://www.thegatewaypundit.com/2021/01/psaki-defends-treasury-secretary-janet-yellen-taking-money-citadel-wont-commit-recusal-gamestop-scandal-video/
I don’t want to brag, but I’m getting .65% APY on a 2 year CD.
“This was literally a crime, performed in broad daylight.
Because they know no one is gonna touch them.”
You……um….you guys wanna’ tell him about the election?
Melvin Capital had, and many believe still has, a huge short position in GameStop (GME). “the spokesman said in a statement..” is some nameless person speaking through a media talking head trying to shake the long traders out of their position. Mom and Pop traders have access to very sophisticated trading platforms, TDA TOS for example, and it’s a simple matter to watch overnight trades and volume. The short position in GME is over 130% of the underlying stock. There is no evidence the required volume of trading to close these shorts has happen. Marvin may have managed to offload their position to a greater fool.
Relatively low volume trading yesterday and today. Some say this is indicative of “short ladder” activity, where hedge funds trade shares back and forth, running the price up and down trying to shake out the retail trader. It is only natural that big traders, smelling blood in the water, will have moved into the long side of this trade waiting for the inevitable spike up. Elon Musk shared another long, GME tweet today.
More on this.
http://ninetymilesfromtyranny.blogspot.com/2021/01/barstool-sports-everybody-on-wall.html
Short selling is a reasonable action, taken when people feel the stock is overpriced and will go down soon. They ‘borrow’ shares of stock on the open market, with the guarantee that they will buy them back in the future. Just a basic stock trade in reverse – sell, then buy instead of buy, then sell.
The problem, as in this case is that a hedge fund with billion$ decided to short a LOT of Gamestop stock (there are a few others getting played too like AMC). And then the head of the fund went on an investment TV show and bashed the company, obviously conspiring to drive the price down so he could make a profit. THAT is illegal, but is permitted because he is an ‘expert investor just offering his opinion’.
The Reddit response was organized by some who knew what he was doing. A lot of Redditors likely lost a little money but they were certainly successful in sticking it to the hedge funds who overbought. Or oversold, in this case. And of course if you buy a stock the worst you can do is lose it all; if you short a stock you can lose a lot, lot more.
I know that some “ Reid” is allowed, but from what I have heard hedge funds do 2 cents on the dollar or something ridiculous like that. That was the problem in 1929 — so much was bought on credit that when the notes came due there was nothing to pay them. I thought it was limited to 50% or so so there would be some cash left if need be without busting everything — sort of what is happening now.
Er, “credit.”
The hedge fund guys can always become welders on the Keystone pipeline. Oh, wait!
@RadioMatt, small investors were in the market on margin (basically, borrowing the stock from the broker while maintaining a “margin” of cash value in the account, say 20%).
When their stocks started downwards they’d get a margin call from their broker. If the investor couldn’t come up with the cash cover the loss on their account, the broker would sell the stocks. This put more downward pressure on the stock triggering more margin calls as it all spiraled downward. What should have been a correction turned into a disaster.
The great depression had deeper roots though, than the stock market. There had been a depression in farm communities all through the 1920s, due to boom during WWI and bust post war. There was overproduction and suppressed demand that had many farmers live on the edge. When the credit dried up due to the banks being over invested in margin accounts on stock investors, those relying on bank credit to raise a crop were whipped out along with the stock speculators.
Looks like a whole bunch of millenial kids finally got a pound of flesh for the 2008 market meltdown
Thats a sentiment that I was getting from reading some comments. They just wanted to murder a few hedge funds for destroying an entire generation
Get in on the Silver trade (SLV etf). Silver is the most manipulated market by short sellers in the entirety of the market. More ounces of silver are traded every day than are mined in a year. It’s paper promises covering a physical asset that doesn’t exist. This is the trade that could really stick it to the biggest assholes like JP Morgan. JPM sits on millions of ounces and they short against it, over and over every contract making untold billions of dollars off their pile. Squeeze them out of their holdings and give true price discovery back to the physical assets!
I’d love to see it happen, much more than GME.
If anyone ever tells you they are a hedge fund manager, punch them in the face.
From Portnoy on Tucker: What do these hedge fund billionaires produce for the betterment of society? NOTHING. They do nothing for society that deserves the benefits that come with being a billionaire.