BDK wrote: ↑Fri Jan 29, 2021 1:10 pm
So, A) People with trading licenses do what Reddit did, and the handcuffs get broken out.
Pointing out that certain market players are in a short bind on a stock and there is money to be made buying it is exactly the sort of thing that licensed traders do all the time. As long as it was not learned via inside info they should be Okay.
The gentlemen at the von Mises Institute seem to agree as well.
Yeah... I suspect if we had a pro liberty admin, this would be an event which could lead to deregulation- with that said, I really do think some kind of speed limit might be needed.
And, I’m not sure how anyone shorts 150% of the shares... Back in the long, long ago, you had to have a share, not just the promise of a share. (I forget the multiple, but at one time, people had far more apple “shares” in their portfolios than had been issued.)
Vonz, yes. However, there seems to have been some planning on their part, and TM very limited knowledge, colluding on stock price manipulation is a major no no. I know it is In commodities.
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.
Love Louis; he has been hot on this.
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If God wanted men to play soccer, he wouldn’t have given us arms. - Mike Ditka
Termite wrote: ↑Fri Jan 29, 2021 2:01 pmWhen 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.
^This right here. Heaven forfend the Masters of the Universe get done unto as they have done to so many others.
I am an unabashed capitalist, about an eyelash from being a Rearden Metalhead...and I am Sick. To. The. Gills of this miserable, corrupt, rigged system dressed up as a free market. I want to see one of these a week... one a day...in financial markets or wherever it's possible to ratf**k some sociopaths who richly deserve a good rogering. Hold, my bully boys, hold.
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MiddleAgedKen wrote: ↑Fri Jan 29, 2021 10:36 pm
I am an unabashed capitalist, about an eyelash from being a Rearden Metalhead...and I am Sick. To. The. Gills of this miserable, corrupt, rigged system dressed up as a free market. I want to see one of these a week... one a day...in financial markets or wherever it's possible to ratf**k some sociopaths who richly deserve a good rogering. Hold, my bully boys, hold.
From my perspective what I see is that a multibillion dollar hedge fund made a speculative decision that carried financial risk with it. A bunch of other people found out about their risky position essentially got inside the fund's OODA loop and collectively exploited the position. The hedge fund started to lose a lot of its capital so they borrowed some money and essentially called their friends at the brokerages to shut down trading of GME stock and essentially try to collude to tank the value of it so that they could recover their short position. I think at some point they managed to do what's called a "naked short" and somehow short 140% of the available GME stock options.
I think literally everyone is pissed at these hedge fund people except the billionaires.
It's not the hedge fund losing its shirt that's got me pissed. It's not the other fund loaning this fund money that's got me pissed. It's that the people who run the hedge fund that got shellacked are using their connections to lock small time traders out of the stock market so that they can drive the GME stock down and recover their investment.
The avalanche has already started. It is too late for the pebbles to vote.
I am not really pissed at either side. The hedge funds took a high risk and high reward position (which is their thing). The Reddit guys did the same in response- oh well, investing is not bean bag. If it turns up some people did illegal stuff along the way then prosecute them (like Robin hood shutting down trades for example) but other than that sort of side stuff, oh well .
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