Reddit/Gamestop vs.Wall Street

Wanderer78

Donald Trump wrote: »

I disagree (confining the debate to the current situation).
From a pure markets perspective, this short squeeze is teaching some big-money speculators about that tail risk that they forget about. It's no harm for them to be taught some manners that they can't always be the ones to drive and control the market. Markets do not have to be rational. If you think that they will always be, then you need to prepare yourself for the big one that might wipe you out.



Would I put my own money into GME? Not a chance. Anyone else who wants to take a risk is entitled to do so. 1000 Euro today could be 1000 tomorrow ....... or it could be back down to 30. It will go back down. The poor eejits left holding it at that time are going to get majorly burned. That point will be reached at the time that nobody wants to take the risk of holding the can any more. That could be in 5 minutes, in 5 hours or in 5 days (maybe even weeks).

since the average joe doesnt have a hope in that game anyway, i suspect average joe is as normal, gonna get proper fcuked after this one

Kivaro

An Ri rua wrote: »

Ah here, leave it ou!!

You're not allowing for their childhoods. Ripped from the bosom of security.

I knew that this would be a great thread.

So Nasdaq and Dow are both currently down around 2% and there are pundits talking about being in correction territory. With the current valuations, there is some way to go for a real correction. The big boys pushed back yesterday, which is why we saw the indices go green on Wall Street. Then today Robinhood got the gitters (most probably due to legislative eyes watching them) and hey presto, Gamestop is up and the markets are down.

James Brown

Basically it's a rigged betting system IMO. Where on occasion the tax payer will bailout unlucky gamblers if they are big and connected enough.

Kivaro

KyussB wrote: »

With the amount of money flowing around, this is no little guy vs the big guys situation - it's hedge funds against hedge funds.

The real story in this isn't the Reddit drama, it's that the finance sector and markets are so disconnected from the real/productive economy, that drama like this makes bigger news than actual events in the real economy.

This type of financial activity contributes zero/negative value to society. We need to seriously expand international taxation of financial transactions, and time/frequency limits for transactions, to begin stamping out this kind of nonsense. Then we need to get some of the gigantic arseloads of central bank money being pumped into the financial sector and asset bubbles, sent into the real economy and into peoples hands, instead.

The finance industry today is parasitical on the real/productive economy, and goes about installing monopolies/cartels and various forms of 'economic rent' throughout economies, buying out politicians to get this done - and is the reason very few of us can afford a home or rent, and have sky-high cost of living.

We need to slash the whole finance sector down to size, and completely end the rent-seeking that's been imposed on the real economy and people. A small finance sector is key to a productive and affordable economy - not a finance sector that's grown so grossly oversized, that it has its fingers dipped in every pie simultaneously, effectively taxing the shit out of us all, with no say in that from any of us, through endless rent seeking.

I like the cut of your jib.

Unfathomable amounts of money was poured into the economy by the Fed and central banks; it was a guaranteed money train for the stock markets. It is highly inappropriate to see the markets setting records high on almost a daily basis (up to a couple of days ago) with exaggerated valuations, all while almost a quarter of a billion human beings were made unemployed all around the world since Covid started a year ago. It just ain't right.

strandroad

Kivaro wrote: »

I knew that this would be a great thread.

So Nasdaq and Dow are both currently down around 2% and there are pundits talking about being in correction territory. With the current valuations, there is some way to go for a real correction. The big boys pushed back yesterday, which is why we saw the indices go green on Wall Street. Then today Robinhood got the gitters (most probably due to legislative eyes watching them) and hey presto, Gamestop is up and the markets are down.

I'm actually losing on this without doing anything related as the stock I'm holding is down as a result but it's worth it for the entertainment.

MisterAnarchy

Melanchthon wrote: »

Going to be interesting if this turns into real serious politics at the White House.

https://www.politico.com/amp/news/2021/01/01/yellen-made-millions-in-wall-street-speeches-453223?__twitter_impression=true

Trump tried to drain the swamp but its back to business under Biden.

Kivaro

strandroad wrote: »

I'm actually losing on this without doing anything related as the stock I'm holding is down as a result but it's worth it for the entertainment.

With all roller coaster rides, there's up and downs, and the most recent ascent (since April) was meteoric. The European bourses were hit big this week, so maybe the much anticipated correction is actually happening.
There are probably a number of other posters on this thread suffering losses the last few days too.

Donald Trump

Wanderer78 wrote: »

since the average joe doesnt have a hope in that game anyway, i suspect average joe is as normal, gonna get proper fcuked after this one

The ones who get fucked are going to be the ones who walked into it with their eyes open (albeit with dollar signs on them)

jt69er

aziz wrote: »

Jeff Paski is portfolio manager for Citadel
Jen Paski is White House press secretary

Father and daughter[/QUOTE]

Not true.

Tony EH

MisterAnarchy wrote: »

Trump tried to drain the swamp but its back to business under Biden.

Melanchthon

Melanchthon wrote: »

Father and daughter or brother and sister
It would be brother and sister but I am saying I have literally no idea if that's true, they could just share names like.

aziz wrote: »

Jeff Paski is portfolio manager for Citadel
Jen Paski is White House press secretary

Father and daughter[/QUOTE]

Just to point out, no actual evidence that they're related at all...

alchemist33

MisterAnarchy wrote: »

Trump tried to drain the swamp but its back to business under Biden.

If you believe that, I have 1,000 Gamestop shares to sell to you

DraftDodger

MisterAnarchy wrote: »

Trump tried to drain the swamp but its back to business under Biden.

Biden is no different than Clinton, Bush, Obama or Regan. They are all puppets in the hands of Wall Street and Joe will do as they want.

DraftDodger

MisterAnarchy wrote: »

Maybe now that Trump isn't CNN's daily meal ticket , CNN might actually do some proper journalism.

They are already trying to say the Russians are involved :pac:

Muahahaha

Mad how high the price has gone today. Like when is the last time anyone even bought a game in Gamestop? About 2010ish for me. They'll probably end up a bit like Golden Discs, vastly scaled down retail presence for a niche market who like to browse. 95% of gamers will just download it rather than go to a shop to buy it.

This is it

Muahahaha wrote: »

Mad how high the price has gone today. Like when is the last time anyone even bought a game in Gamestop? About 2010ish for me. They'll probably end up a bit like Golden Discs, vastly scaled down retail presence for a niche market who like to browse. 95% of gamers will just download it rather than go to a shop to buy it.

Apparently they'll do ok. Most of their B&M will close down and they'll move to e-commerce. Big overhaul of their board to help them do that. I think that's one of the issues. If Melvin and the others were left to short the company and drive the shares to nothing it would disappear and they'd be forced to shutdown, what has happened could save them.

scamalert

Muahahaha wrote: »

Mad how high the price has gone today. Like when is the last time anyone even bought a game in Gamestop? About 2010ish for me. They'll probably end up a bit like Golden Discs, vastly scaled down retail presence for a niche market who like to browse. 95% of gamers will just download it rather than go to a shop to buy it.

exactly my thoughts one would need to be dumb found to buy anything, i mean likes of tesco and other stores took over the game industry like 5yrs back, its pointless thing with likes of steam for games and simillar companies not to mention amazon etc.


that said it does show the true colors how finance tycoons run the world, if few thousand ppl managed to turn the stock around and result was to stop trading it, entire thing is nothing short of major scam, and thats even tiny one prob with what they get away with.

Infini

Giblet wrote: »

The issue here, is even in WSB, it's widely acknowledged as a junk stock that you will lose on. While there are some who will make money out of this, it's not through deception! I've never heard of this at this scale, a forum the size of a small country choosing to YOLO some stock for laughs.

It's amazing and incredible at the same time, the more savvy one's will know how to make money out of this and the best part will be that they punched a payday out of the same vulture funds that have been fúcking people for years. Other's are actually throwing money into this knowing they wont get it back because it's both entertainment and a way of basically sending a massive "fúck you" to the same bastards who have gained on the back of honest people for years. Even Elon Musk knew what he was doing when he tweeted Gamestonk, he's been a victim of these **** himself so it was a massive dose of karma to be able to return the favour by motivating his followers into this.

if this proves anything it shows there's serious distortions in the market and these vultures have been getting rich sucking up money out of the economy for their own benefit while leaving the rest out of pocket and wrecking honest buisnesses. A redistribution of wealth from these vultures to the people involved in this means people getting debts paid off and being able to buy houses and other things they would have to work their backs off for years. Fair balls to the lads organising this.

martingriff

Infini wrote: »

It's amazing and incredible at the same time, the more savvy one's will know how to make money out of this and the best part will be that they punched a payday out of the same vulture funds that have been fúcking people for years. Other's are actually throwing money into this knowing they wont get it back because it's both entertainment and a way of basically sending a massive "fúck you" to the same bastards who have gained on the back of honest people for years. Even Elon Musk knew what he was doing when he tweeted Gamestonk, he's been a victim of these **** himself so it was a massive dose of karma to be able to return the favour by motivating his followers into this.

if this proves anything it shows there's serious distortions in the market and these vultures have been getting rich sucking up money out of the economy for their own benefit while leaving the rest out of pocket and wrecking honest buisnesses. A redistribution of wealth from these vultures to the people involved in this means people getting debts paid off and being able to buy houses and other things they would have to work their backs off for years. Fair balls to the lads organising this.

As long as people realise there limits and don't think I am a god at this and get royally s$€¥:€d

99nsr125

Overheal wrote: »

That I don’t know, it certainly sounds fishy.

If they’re asking for a bailout they can **** right off. The stock market is artificially inflated anyway: net loss of 3M jobs since Obama left office yet the market is at all time highs? **** off!

Synthetic options

Bets on bets

This is it

martingriff wrote: »

As long as people realise there limits and don't think I am a god at this and get royally s$€¥:€d

That's it, still need to be careful. All well and good seeing it dip and rise each day but eventually it'll dip to what it should be, probably less than $5 a share, so those buying in at $200/300/400 could lose the lot.

I got in on Wednesday, made a bit, sold some and left the rest in. Happy enough to ride it out now. If it tanks I'm covered, if it goes $500/1000 Monday then I've made a few $$$$. The comments, memes, videos, drama, is the best part of it. Great entertainment.

Bubbaclaus

Given I am riddled with independence restrictions in my current role, it has been a fascinating few days of watching the market from afar.

I just hope the people joining in without any stocks knowledge manage to not get too burned and get out again before the inevitable correction.

StupidLikeAFox

Muahahaha wrote: »

I think whats interesting about this case is that this group on Reddit have proved up the concept that if they act collectively they can crucify hedge funds over their short selling positions. They can play them at their own game and win. So into the future now a hedge fund manager who is thinking of taking a huge short position in a company will have to also think about the possibility of a group of Redditors targeting that position. That in itself its huge, its like the whole game has changed just in the last couple of weeks alone.

I think we will see more of this kind of activist investing in the future off the back of what happened this week. They've had a lot of fun and made a lot of money. Now they know they can repeat the trick by targetting any stock they like that is subject to massive short selling. That in itself will send shivers down the back of Wall Street, this isnt supposed to be happening.

I'm a little sceptical about this being solely a group of mercenaries on Reddit doing it from the common good. I follow WSB so I know what its all about, but on the face of it this looks like a classic pump and dump.

The trump and brexit campaigns were successful partly because they were able to tap into the right peoples mindsets through social media and manipulate their thinking - its not a wild idea to think a group of people saw WSB as cohort of people they could exploit and make a bucket load of money as they YOLO'd their life savings.

Doctor Roast

Seems to be an element of payback for 2008 to this.... Fair fcuks to them

ocallagh

From my extremely limited knowledge on the subject (I've spent maybe 4hrs reading up on it, and limited experience trading myself), one thing that I don't understand is the relationship between short selling and the survival of the underlying business. There are some comments in this thread, and also throughout Reddit, that Melvin and other hedge funds, through their short selling, are either causing, or significantly contributing to the demise of gamestop.

Surely anyone short selling is simply speculating on the price of the shares, and competing against buyers, who are also speculating on the price of the shares. Neither are competing with the underlying business?

Separately, and this is more of a conspiracy theory, but I've seen a few interviws today with a number of Reddit users, and many have been buying gamestop for a number of years now, from as early as 2019 when the stock was at $5. They believed the stock was undervalued, that there was a place for B&M in the distribution of games, and despite Covid, and the demise of malls, Gamestop's stock was worth more than $5. And they were correct. By early December, the stock was at about $20, a 4X increase. One user talked about how they became obsessed with gamestop, staying up all night discussing it etc. One of the articles here, of the main user behind it all: https://www.msn.com/en-us/news/crime/meet-keith-gill-the-man-who-drove-the-gamestop-reddit-mania-and-made-millions/ar-BB1ddGaY

So by December, we have a number of Hedge funds who have massively shorted the stock, and a number of founders of the WallStreetBets subredit who have been purchasing the stock for a few years. Two parties, both speculating on the stock price.

Did one side figure out how to use their 2M followers to their advantage? Have they managed to cash in on the public's general detest of the financial industry? And perhaps along the way they might take a bit extra from a hedge fund or two? They seem to have absolute command over when their 2M (or 6M now) subscribers buy, hold and never sell. I wonder when Keith Gill will sell his gamestop stock, or perhaps short it himself

ocallagh

StupidLikeAFox wrote: »

I'm a little sceptical about this being solely a group of mercenaries on Reddit doing it from the common good. I follow WSB so I know what its all about, but on the face of it this looks like a classic pump and dump.

The trump and brexit campaigns were successful partly because they were able to tap into the right peoples mindsets through social media and manipulate their thinking - its not a wild idea to think a group of people saw WSB as cohort of people they could exploit and make a bucket load of money as they YOLO'd their life savings.

I could have just thanked this, and not bothered with my post. The hedge funds might lose some, but a number of reddit users also be left with a heavy loss and it's not a wild idea to think they have been the target all along

fritzelly

Don't know if anyone here watches LTT on YT - but on his WAN show he said he would 5x all the superchats and invest in GME

A few mins later he was in for 50k lmao

If anything this debacle has shown up the stock market for what it is - you're either in the clique or you're not

Overheal

fritzelly wrote: »

Don't know if anyone here watches LTT on YT - but on his WAN show he said he would 5x all the superchats and invest in GME

A few mins later he was in for 50k lmao

If anything this debacle has shown up the stock market for what it is - you're either in the clique or you're not

It continues to impress me how massive the following is for Linus. I was in the lab the other day with another grad student, fresh this semester from
Bangladesh… while we were waiting for the experiment to do its thing he started watching yet another Linus video.

y0ssar1an22

i dont think this lad should be let on TV anymore after what he did.

the price of any stock is mass psychology. underlying value means nothing. if enough people think a stock will increase, they will buy, its a positive feed back loop.

the same goes in the opposite direction.

do people use that to their own ends? no doubt.

on TV you have 'experts' decreeing the market will crash. there's a lovely self full filling prophecy.

patnor1011

Fairly easy to get in if you do have revolut account. You can also have fun playing with other stocks, commodities and crypto.
If you know what you are doing you can easily cover your monthly fees and make some extra money. If you do not know what you are doing you will lose money.