WSB vs Wall Street / Gamestop Stock and others blown up by Subreddit
- Thread starter Kasper
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The WSB crowd is extremely non-PC, which makes them ironic heroes for this alleged social justice crusade.
I'll be perfectly calm when I give you a warning next time I see it.
In which case the things they say probably wouldn't be well received in forums where people are easily offended.
The WSB crowds is all about making money - the SJW will embrace any cause and or crusade that even remotely fits into their narrative. Financially illiterate people are giving lectures on shorting, hedge funds, short squeezes, gamma squeezes, exchanges etc, etc.
The very existence of gamma squeezes strikes me (no pun intended) as some sort of short coming that the Black-Scholes model doesn't adequately compensate for.
Is that like the White Pele?
No mate, that's the Rooney Rule
Read the room. I'm not sure it's banned on here like some other terms (which they also happen to use on WSB, I think?), but it's always dangerous to take words from one internet culture into another.
Its on his wife's instagram. Apparently he missed the birth of his son to be on a Rogan podcast as well.
Hes a dickhead
Isn't that to do with Covid restrictions?
I'll read the room - you can spend half an hour typing what likely happened with RH yesterday and get very little meaningful engagement
You write a word describing how people refer to themselves in the most famous forum in the world, and all of a sudden I've get a bunch of notifications expressing indignation.
I doubt it. Either way you dont fly to Texas!
Maybe autistic people call themselves that the same way some people with Aspergers say aspies. I thought aspie was an insult when I first read it but apparently it's fine.
I really don't see how this is so difficult to understand. Some groups have ways of referring to themselves - or others - that are not appropriate to use beyond that environment. There really isn't more to it than that. You're not being cancelled, there's no SJW keyboard army after you. And yes, yes, I'm very impressed that you spent half an hour typing about something you presumably know a lot about.
Why creating a hedge fund with lots of money put together having strategy is not manipulting the market (not mentioning having banks backing them up and investing apps forbidding buying stocks) and creating a momentum in reddit with lots of money put together having strategy is manipulation?
Why A group of people way more coordinated under 1 sole decision maker is good and another group of people less coordinated with variable decision makers is bad?
Why A group of people way more coordinated under 1 sole decision maker is good and another group of people less coordinated with variable decision makers is bad?
No man, you're getting to the level of saying that someone who got in a car to drive is guilty of attempted murder because driving might kill someone. Investments have been pooled for ages for a variety of reasons, in all kinds of different legal arrangements, and that does not consist manipulation ipso facto.
As a matter of fact funds often put a cap on their size (reject more money) because they find that the larger they are the harder it is to generate good returns. They want to trade without moving prices, not this theory that people have got in their mind that they want to take a position so large it skews the price, and then magically poof! and they can trade out of that position without moving the price the other way.
All the more reason HFT should have been banned years ago. It serves no good purpose and only leeches out money from everyone for a few cnuts to get rich.
No one thinks it a "social justice crusade" ffs.
People just like the idea of some hedge fund jerks getting their comeuppance due to a group of little guys.
And pointing out the flaws in financial sector manipulation which might lead to some long term good.
Big funds have that capacity if they want it. If not we could talk about the London Whale. Also, of course they will not be able to move stocks like Tesla and Google but can affect thousands of smaller stocks. feck, when I was a they trader I could affect low volume stocks with not much money.
But no, my post was not if a hedge fund is a market manipulator (I believe that some are not, some are and some sometimes), but how dare they to accuse the reddit investors of manipulators when they do exactly the same in a more organized way and with more intention and way more often
No more than the idiots who crashed the world economy in 2008.
The real manipulation is when big money traders play the markets, like setting up ladder attacks after they short a share, and get their cronies in the finance media to talk shit about a share persistently. It's getting more in your face and blatant these days.
well worth a watch
Can they? Yes. Do they? No, or not intentionally.
Hedge funds and investment funds spend a lot of time and effort figuring out how to trade without moving markets, because it changes the investment case in many cases. Block venues exist precisely because of that. Part of the reason Rennaisance faltered last year is because they had gotten too big and their price inefficiency trades were closing before they could make them. If they all got together on Bloomberg and rallied each other to force a short squeeze they would all go to jail.
The London Whale was basically a treasury trader. He should never have done what he did and a lot of people were fired/reassigned/sentenced in the fallout from that, but he was not a fund.
If the price action on GME was the other way around and caused by hedge funds acting in concert, trading would be suspended and some funds would be getting a big fine.
When Phil Falcone caused a short squeeze on some bonds in 2006-2008, he was later charged with securities fraud (there was some other shit he'd done too). If hedge funds were to cause a short squeeze and there was so much as a bloomberg chat of traders coordinating their buys, there would almost certainly be charges.
Have you read anything on gamestop, their profitability and their changing business model or are you just parroting a lazy narrative?
Maybe have a watch...
(the above video is from July, when stock was valued ~$4)
The 'the big guys always rig the market and it's allowed' narrative is far too lazy. Please show me which HFs are printing +1000 percent returns like GME so I can get invested!
That's what blackberry says.
Maybe you should invest in them if you think they're the future instead of calling people lazy naratives.
What has me personally investing them have to do with a false narrative?
Oh yes, historical data, analyst all over the world predicted gamestop downfall, yet a dude with a cap on YT and it's ON.
Which are these analysts all over the world? Citron and Melvin are the whole world? There was a world-wide analyst consensus on Gamestop that I missed, or are you just making stuff up?
Also, analysts all over the world thought mortgage-backed securities were triple A because they bought into a narrative and couldn't be bothered to do their own due diligence. Then the world crumbled. And it's not just "dude on youtube". There were also hedge funds on the other side of the bet going long on Gamestop when it was $4 a pop. Most notably Burry's Scion Asset Management (of Big Short fame).
https://markets.businessinsider.com...percent-gain-gamestop-stake-2021-1-1030004676
Are those youtube clowns and reddit bros too?
The reason why the purchase of GME stock started to become a thing on WSB since last summer wasn't to short-squeeze hedge funds. The people advocating the purchase couldn't know on their wildest dreams that they would get so much volume that they would actually pull off a short-squeeze months down the line. It was neither because "they are gamers who like Gamestop". Actually, gamers hated gamestop because it bought 2nd hand games from them for couple of bucks to sell them back at 90% of retail price. They picked it up because of videos like that explaining the company had solid fundamentals and the only reason it was dipping was because of the negative pressure from 140% of the shares being shorted. When the price started rapidly climbing in mid-Jan that's when the short-squeezing and sticking it to the man came into it. Not before.
The bottom line is GME wasn't a $4 stock when it was being shorted. It wasn't in any shape or form going bankrupt, they weren't a failing company. And yes, people who say that, are just perpetuating a lazy narrative.
They werent a failing company?
Their stock was 50 dollar a pieces not long ago now its 4dollar.
They might worth something for their asset alone, which i doubted since most games are available online on steam and other download. And most stores are probably rented.
This has got nothing to do with short sale or the rise of the plebians. It's just that gamestop a company that 100% selling physical game and peripherals can't compete with the time because we now you know... gamers donwload stuffs instead of buying physical copies.
So are you implying that the big institutions having the capacity to make the brokers halt the retail trading of an asset isn't wrong?
Nothing wrong if you're the elite probably
omg
So are you implying that the big institutions having the capacity to make the brokers halt the retail trading of an asset isn't wrong?
Nothing wrong if you're the elite probably
So are you implying that the big institutions having the capacity to make the brokers halt the retail trading of an asset isn't wrong?
Nothing wrong if you're the elite probably
Wrong system? Or wrong individual?
Short selling is not wrong, many people does that. That is part of trading concept.
When there's collusion or unfair practice that's when it's wrong.
You got to differentiate which which.
- They werent a failing company?
In 2020? Bar covid, no. They had already hit their bottom in Aug 2019. What remained was a much smaller company but ultimately, not a bad one.
- Their stock was 50 dollar a pieces not long ago now its 4dollar.
First off, it's currently $300+, if you can buy them for $4 just tell me where and I'll be there with my all my savings.
Secondly, last time their stock was over $50 was in 2014. That's a long time ago in investing.
If you were shorting them at $50 you were totally right. If you were shorting them at $4 you were wrong.
They weren't a company going under any more, which is what a failing company is.
- It's just that gamestop a company that 100% selling physical game and peripherals can't compete with the time because we now you know... gamers donwload stuffs instead of buying physical copies.
They were changing their business model to become entertainment hubs (lan-gaming, competitive gaming, retro-gaming etc.) Not mere retail shops.
They were basically adopting a business model that has worked for smaller companies bringing their name and assets into it. Hence some people were long on them.
That and their balance sheet.
You're basically saying they're sinking.
They ain't going to come out saying we fecked up big time. Going retro? Lan gaming? That's alot of buzzword with nothing concrete. What are they gonna morph into? Net cafe with hotseat?
Do you even game? I got hundreds of retro games on my steam account. So unless they come up with actual game they're selling what exactly?
What new product are they offering to the market?
You missed the “bro”.