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Hey guys..... what if..... we took this same logic of regular people working together and not selling your stock to get back at the rich people who’ve been exploiting us for years by controlling the market and applied that logic at work? What if the citizens came together and demanded to be paid a livable wage, and maternity leave, 3 weeks vacation, etc. They can’t say no to all of us. Divided we beg United we bargain. Do you think Tucker Carlson would support us?
An observation on why we are seeing the left AND the right unite on this issue:
If you subscribe to left wing economics, generally you believe in:
Market/business regulation
That proper government intervention is good and required to help out the most needy in society (social welfare, wealth redistribution, taxing the rich, etc.)
If you subscribe to right wing economics, generally you believe in:
Low to minimal market/business regulation
That minimal government intervention is good because free market forces should dictate business activity and let the strong survive and weak die off
In this case you have NEITHER:
market/business regulation that appears to favor the rich and powerful (it's not free market, and its not regulation to help the masses)
Some government intervention is in play but it is skewed to wall street (see today, 2008).
So in this case BOTH left wing and right wing people are angry because this kind of shenanigans are not conducive to any of their economic views. It is truly above a left vs right issue.
In the recent years and after reading more into 2008 and looking at both the dems and GOP....I've come to the conclusion that one of the most fundamental struggles today is NOT actually left vs right...but the rich vs the masses. Tendrils of wall street seep deep into both the right AND left wing politics (see JP Morgan supporting Biden, see wall st supporting Obama, etc.) and hence how George Carlin is very correct. AND this could hopefully be one thing to help galvanize people into seeing this reality and stop the bickering with other cultural/social issues that is simply a distraction (ie, guns, abortion, etc.) to the true foe at hand.
Hmm let me see if I can summarize. Is this like a bookie rigging a fight so that his guy will intentionally lose, everybody finds out about this rigging and bets on the other guy to win, and when it comes time to pay out, the bookie's boss cancels the fight because he doesnt have enough money to cover people's bets? Except for people who bet on his guy to win, they still owe money. Is that about it?
I'm a big fan of Chamath and Jason Calacanis isn't too far behind. They have a podcast that I listen to occasionally, this episode is pretty good https://www.youtube.com/watch?v=rWEPSKkkdKQ
Good to take a peek behind the curtain of some of these filthy rich assholes. I knew Chamath was a billionaire from his facebook days and that other dude looks like is also worth 100M+. I'm guessing the other two guys are just as wealthy given they imply they do angel investing and venture capital.
Interesting technical stuff to get to know more. I like Chamath the best out of them all. But the whole thing also gives off a very tone-deaf vibe to the real working class peoples struggles.
That Jason dude looks like was one of the original investors in robinhood?
I know this won’t be well received, but I’m concerned for a lot of people who’ve been buying GME stock thinking they’re somehow taking on Wall Street. To be fair, those who were early to the trade actually did hurt a couple hedge funds, but the people who followed changed the dynamic considerably.
I know you guys all want to stick it to the man. Unfortunately, you’ve created a situation where the man is going to screw you, hard.
What’s one thing hedge funds do that lead to this?
They find stocks that are overvalued, short them, and then wait.
What have you all done?
Created a horrifically overvalued stock.
Why do you think the short ratio is still more than 100% of the float?
Who do you think’s been selling you GME at $300 a share?
The guys who are going to buy it back from you in a month for $30. They have deeper pockets and more margin than Citron, and are perfectly content to wait you out, whether it’s next week or next year.
To be clear, I have no skin in this game in either direction, though if I could stomach taking your life savings, I'd be one of the people selling you GME for $300.
All this talk about retail investors screwing over hedge funds - you are literally giving those hedge funds all your money. People have leveraged their entire life savings to buy an overvalued stock. You are not beating Wall Street. This is their game. You are giving them your money.
Yes, it was funny, and Citron and Melvin took a hit on their initial trades. But now it’s open season on everyone who bought in. At the end of the day, you grossly overpaid for shares of a struggling retail company. That is what you now own.
How do you unwind this position? Is everyone going to hold until they die? What happens if GameStop, like so many other retail chains, goes bankrupt in a couple years, wiping out all the shareholders?
Even if you hold, you’ll be wiped out long before then. At these price levels, GameStop’s leadership has a fiscal obligation to start diluting their stock as soon as legally possible. It won’t matter if everyone holds if there’s suddenly 300% more shares available.
In the short term, the price could definitely go higher if retail investors have money to keep buying. So what happens if you manage to push it to $500, or $1000? Wall Street will be thrilled to keep selling you more shorted stock just like GameStop will be thrilled to keep printing it.
There is no way for everyone to unload their positions without losing massive amounts of money. There is no way for everyone to hold their positions without losing massive amounts of money.
You are playing Wall Street’s game and they are happy to take your money. This is going to end badly and is going to hurt a lot of people who can least afford it.
Congrats to everyone who made a killing with buying options early - even though they used the rest of you to inflate the stock price. But for everyone holding the stock - I wish you the best luck.
Guy makes a VERY good point. Hedge funds are now laughing as they continue to get into shorts with how high GME price is. Basically a game of chicken...the hedge fund will try to hold out and cash in once the stock price crashes....basically can the retail side hold long enough before the hedge funds profit? One side will lose big
Wow, raking in $10,000 from an 1 hour live stream.
Obviously Linus is like the Doug DeMuro of the tech/PC review youtuber world given how large he has become. How much money does Linus make a year anyway? 1M/yr? More?
Guy makes a VERY good point. Hedge funds are now laughing as they continue to get into shorts with how high GME price is. Basically a game of chicken...the hedge fund will try to hold out and cash in once the stock price crashes....basically can the retail side hold long enough before the hedge funds profit? One side will lose big
Sure it's a game of chicken. On one side you've got a few nice Ferraris and Lambos who think whoever has the nicest car will win this battle, on the other you have a million ford pintos whose owners bought them just to smash these fucking ferraris and lambos. They are not playing the same game here. You think they will regret losing their one or 2 shares? HA, this might as well be a gofundme.
Following one of the craziest weeks in Wall Street history, Hollywood already has its sights set on the wild story with a familiar face looking to tell it. Sources tell Deadline that following a competitive situation, MGM has acquired the book proposal The Antisocial Network from New York Times best-selling author Ben Mezrich, which tells one of the biggest news stories of the year, about a ragtag group of amateur investors, gamers, and internet trolls who brought Wall Street to its knees. Even though the story is barely a week old, insiders say Mezrich and his reps took the proposal on the market at the end of the week and by Friday night MGM had moved fast to acquire the rights.
Mezrich has written more than 20 books, with well over six million copies sold. His books including Bringing Down The House: The Inside Story of Six M.I.T. Students Sho Took Vegas For Millions , which spent sixty-three weeks on the New York Times bestseller list and was adapted for the screen with the film 21. The Accidental Billionaires: The Founding Of Facebook, a Tale Of Sex, Money, Genius and Betrayal spent eighteen weeks on the New York Times bestseller list and appeared on hit bestseller lists in over a dozen countries. Mezrich and Aaron Sorkin share a Scripter Award for Best Adapted Screenplay for the film adaptation The Social Network.
WSB is calling it a short attack ladder? not sure what that means, but I haven't panic sold... yet.
From what I've read, and I may be wrong, but a short attack ladder is when two hedge funds basically sell a huge amount of the same stock back and forth between each other. driving the price lower and with the volume they are able to handle...it makes it LOOK like the crash is happening which then drives other participants (ie, retail/WSB guys) to sell their shares. Essentially manufacturing a fake crash to help usher in a real crash in price. I may be wrong though so someone with knowledge can certainly correct me
From what I've read, and I may be wrong, but a short attack ladder is when two hedge funds basically sell a huge amount of the same stock back and forth between each other. driving the price lower and with the volume they are able to handle...it makes it LOOK like the crash is happening which then drives other participants (ie, retail/WSB guys) to sell their shares. Essentially manufacturing a fake crash to help usher in a real crash in price. I may be wrong though so someone with knowledge can certainly correct me
yea something like that. But they supposedly aren't even selling real shares, thats why the volume is so low.
The volume should be much higher to drive a swing like we are seeing.
Totally interesting what is going on.
The Robinhood CEO is awful at interviews... from the several I've seen in the past week.
After 3 minuted I couldn't take it anymore.
Because his answers are probably canned after they've been screened/washed with their PR/legal departments. Chamath called his answers straight out lies and I would not be surprised. You're never going to get the real answers on public media....you'll have to be a fly on the wall on their closed door meetings.
Someone should start trending a hashtag to boycott RH.
I was truly shocked after I learned how they actually make money....it's the exact opposite of the meaning of "robinhood." Their customers are the big hedge funds and essentially sell retail traders data to the big firms so then the big firms take that data and arbitrage that out and scalp the trade for money....hence why its "free" to the end-user.
yea something like that. But they supposedly aren't even selling real shares, thats why the volume is so low.
The volume should be much higher to drive a swing like we are seeing.
Totally interesting what is going on.
Man, with how scummy these dudes are....there are probably crazy/weird/exotic shit that they can do behind the scenes that we have no idea about....these modern day financial markets are crazy complex in some of the instruments they can use...and contracts that bet on other contracts and all that stuff....it's really quite unnerving honestly.
In that podcast I linked, Chamath actually mentioned how there was another almost-financial calamity BEFORE 2008...and he said it occured in Hong Kong around 1998 when some firm was able to leverage 5 billion in real capital to get 125 billion credit to then bet on something like 1.25 TRILLION dollars worth of securities...and apparently they were on the wrong side and somehow the US govt had to step in to rescue them because that was going to crash the world economy.
One of the issues with modern day finance are these complex instruments to make money purely for the purpose of making money and nothing is actually going into real businesses to make real economic activity...high frequency trading, derivatives, shorts and other things that really adds no real world value. You make millions off of nothing and you contribute nothing.
They also mention how Bill Ackman went on TV to yell how apocalypse is coming to hotel stocks in March of 2020 and then people panicked and hotel stocks crashed like crazy...and then guess what...Bill Ackman had shorts in those stocks and his fund made something like 2 billion dollars.....WTF. What economic good did he do to make 2 billion dollars...except pure market manipulation.
The original point of these capital/equity markets is for companies to get funded to provide real economic goods/services to society and then if you do well you get rewarded. Now it's basically becoming a game of who can out-gun who and who has the fastest computers and who can get the juicy insider info first so someone can make huge amounts of money playing in this complex casino.
The Robinhood CEO is awful at interviews... from the several I've seen in the past week.
After 3 minuted I couldn't take it anymore.
Yeah the beginning is rough because he tries to be buddy buddy with them and crack jokes, Elon wasn't really having it. Then he starts off "I'm Robinhood's CEO..." Elon's like yeah we know, wtf happened. In the end the CEO basically says what Chamath was guessing happened. The NSCC demanded an assload of money ($3 Billion) from Robinhood that they couldn't pay, and in order for the NSCC to lower the amount to some RH could pay ($700 Million) they had to agree to some limitations. RH says they don't know what the formula is that NSCC uses to determine the amount but they don't think there was anything nefarious behind it. That's just their opinion though.
This is similar to the tactic that conservative states have done in an attempt to limit voter turnout or ban abortions. Since they can't exactly ban abortions they tried to set the medical requirements of abortion clinics so high that they basically can't operate in the state, or they get so restrictive with early voting, voter ID laws that it in effect reduces voter turnout in specific communities.
Yeah that's pretty normal. It goes back to the old days, no way would anyone take a trade less than 100 shares and they would never let you do something like 102 shares.
01-29-2021, 09:04 PM
no way would anyone take a trade less than 100 shares and they would never let you do something like 102 shares.