Reddit v. Billionaires

[Jered]

https://youtu.be/PmDYrMGKMQM

This guy has a good synopsis.

Basically, what happened it that a bunch of people on Reddit found out about some short positions that hedge funds took against GameStop and bought the stock which made the hedge funds take a loss.

I've learned about how short selling works and I have no sympathy for short sellers in this case.

[HTRN]

The more this unfolds, the more it becomes blatant that they're breaking dozens of laws and securities regulations..

But nothing will happen because of the same reason they felt bold enough to do this under the new administration: Biden is a corporate whore.

[Jered]

The more this unfolds, the more it becomes blatant that they're breaking dozens of laws and securities regulations..

You're referring to the billionaires, right?

Those people got Ted Cruz, AOC, Rashida Tlaib, and Don Jr. all angry with them.

[Termite]

You're referring to the billionaires, right?

Those people got Ted Cruz, AOC, Rashida Tlaib, and Don Jr. all angry with them.

When Ted Cruz and AOC agree on something, that's incredibly noteworthy.

[Rustyv]

So far, the most fun I’ve had with this is seeing my wife’s reaction when I send her an article from a “legitimate” website (nbc, CNBC, cnn) and she has to read about how some Reddit user named Tigolbiddies or DerpTrade420_XXX is taking some guy named Melvin to the cleaners and was just a few minutes away from completely breaking the market.

I’m laughing so hard right now. Weaponized Autism vs. Hedge Funds, gambling to see who can remain stupid longer.

With the hedge funds calling their friends at the trading houses and SEC to change the rules of the game, I wonder if they might now have the upper hand. But then again, a bunch of internet randos did just slam a fund for $3Billion. Who knows where this ends up...

[BDK]

So, A) People with trading licenses do what Reddit did, and the handcuffs get broken out.
B) This kind of crap breaks the market. The mob starts being able to destroy anything it wants/blackmail anyone they want.
C) My personal feeling, is this is why we should completely deregulate the capital market, as there is no reason to worry about SEC filings, etc. There’s enough people nosing around to find any shenanigans.
D) Woth that said, there may have to be some kind of break/speed limit on trades, etc. otherwise you’d have warring bands of the mob, making and breaking companies to do nothing for themselves but accumulate wealth.

[Termite]

So, A) People with trading licenses do what Reddit did, and the handcuffs get broken out.

Reddit itself didn't do it, it was the little day traders communicating via Reddit that started buying depressed stocks that did it.

I’m laughing so hard right now. Weaponized Autism vs. Hedge Funds, gambling to see who can remain stupid longer.

With the hedge funds calling their friends at the trading houses and SEC to change the rules of the game, I wonder if they might now have the upper hand. But then again, a bunch of internet randos did just slam a fund for $3Billion. Who knows where this ends up...

When big hedge fund managers can short more of a company's stocks than there are for sale, that's a huge problem. It's total bullshit.

Right now Robinhood and TD are stopping small traders from buying the affected stocks, only letting them sell. And there are anecdotal reports that "little" people's accounts are selling those stocks without their consent. That's abuse and blatant favoritism of the big boys, but the TOS rules are changing by the day, so....

Some pigs are more equal than others.

[Termite]

D) With that said, there may have to be some kind of break/speed limit on trades, etc. otherwise you’d have warring bands of the mob, making and breaking companies to do nothing for themselves but accumulate wealth.

Which is exactly what Paul Singer did to Cabelas. It devastated Sidney, Nebraska.
https://www.foxnews.com/us/paul-singer- ... ops-merger

And when the "little guys" cause the "big boy" hedge funds to eat it while they make some dollars, suddenly it's a problem.

"Some pigs are more equal than others."

[Weetabix]

As I understand it, hedge funds were originally created to keep farmers from going broke when traders played with grain prices. Keeping farmers from going belly up always seemed like a decent idea because food.

But then, the Wall Street types learned how to manipulate, leverage, and derive enough things that they could get wildly rich at the expense of Main Street. And when it went bad, they were "too big to fail" and got bailouts. They have no disincentives for whatever they try, and huge incentives to try to screw people.

I can't feel sorry for the hedge fund losing a gob of money. It happened to a lot of people's retirement funds in 2008. What comes around goes around.

It would be nice, though, if they could figure out some way to run the whole thing so that no one could screw anyone else.

[HTRN]

Right now Robinhood and TD are stopping small traders from buying the affected stocks, only letting them sell. And there are anecdotal reports that "little" people's accounts are selling those stocks without their consent. That's abuse and blatant favoritism of the big boys, but the TOS rules are changing by the day, so....

Some pigs are more equal than others.

The " interesting" part, is that Robinhood has a financial connection to one of the hedgefunds in question, Citadel.

The SEC is going to crawl up their ass.