The King Of Swing Posted January 29, 2021 Share Posted January 29, 2021 Mentioned this ongoing story in another thread but wanted to get see what other people here think, though this thread will probably sink. Basically a reddit group tanked multi billion dollar hedge funds that were betting on Gamestop failing and it appears to have spread to other companies. Personally I'm loving ever second of this even though I'm under no illusion that the system will eventually win out. Just nice to see vulture capitalists squealing for a change. Fuck getting my head around the actual details though. Quote Link to comment Share on other sites More sharing options...
Mr_Danger Posted January 29, 2021 Share Posted January 29, 2021 Haven’t Robinhood already stopped trading on GameStop? I know shit all about the stock market but surely this only ends in the system being tailored even more in the favour of the billionaires. It’s quite funny that an app with a name that is literally synonymous with stealing from the rich and giving to the poor caves in to pressure from the hedge funds straight away. Anyway, shall we all club together and get Rumbelows trending? Quote Link to comment Share on other sites More sharing options...
Keith Houchen Posted January 29, 2021 Share Posted January 29, 2021 It’s funny as fuck. I love the commentary angle of how in the long run, they won’t get rich if they hang on to their stock. That’s not the point, it’s to bankrupt the people whose business consists of targeting companies to ruin them and lose people their jobs.  Colbert mentioned it on his show and as usual, he’s brilliant  Quote Link to comment Share on other sites More sharing options...
The King Of Swing Posted January 29, 2021 Author Share Posted January 29, 2021 Watched The Late Show clip earlier, fair play US hosts can be great at times. Checked out 212 Trading earlier and they were no longer accepting new accounts due to unprecedented demand 🤣 Big upside to all of this imo is that it perfectly highlights how the markets are not meant for the common folk to get rich from. As Kyle Kulinski put it. These are not the smartest guys in the room, it's the greediest guys in the room. Quote Link to comment Share on other sites More sharing options...
King of Hamptons Posted January 29, 2021 Share Posted January 29, 2021 A few normal people will get rich of this, I'm for all it! Will it make a difference in the long run? Nope..  This is all perfectly legal too... And as so as us normal folk start doing it the rich billionaires.. MP's etc shut it down... Quote Link to comment Share on other sites More sharing options...
Moderators neil Posted January 29, 2021 Moderators Share Posted January 29, 2021 2 hours ago, Keith Houchen said: It’s funny as fuck. I love the commentary angle of how in the long run, they won’t get rich if they hang on to their stock. That’s not the point, it’s to bankrupt the people whose business consists of targeting companies to ruin them and lose people their jobs. I've seen this take a few times and I don't think its quite accurate. The saw a vulnerability and exploited it very well by taking advantage of their YOLO style of investing and therefore are making out like crazy because of it. I don't think there was much thought about trying to put a hedge fund out. Its all about those tendies. Quote Link to comment Share on other sites More sharing options...
Mr_Danger Posted January 29, 2021 Share Posted January 29, 2021 Has the Reddit group not told everyone to hold on to the stocks anyway? I thought the idea was to drive the price up so that when the hedge funds had to buy them the price would still be sky high but people jumped on and made tidy profit. This is going to make a great Reply All episode. Quote Link to comment Share on other sites More sharing options...
Paid Members Hannibal Scorch Posted January 30, 2021 Paid Members Share Posted January 30, 2021 1 hour ago, Mr_Danger said: Has the Reddit group not told everyone to hold on to the stocks anyway? I thought the idea was to drive the price up so that when the hedge funds had to buy them the price would still be sky high but people jumped on and made tidy profit. This is going to make a great Reply All episode. Yes. But some stocks have been automatically sold by Robinhood (which is like Trading 212) to protect people from losing money. Or to allow the hedge funds who have to buy them next week a chance to do so without going bankrupt. A court case has already been filed over it Quote Link to comment Share on other sites More sharing options...
Paid Members SpiritOfTheForest Posted January 30, 2021 Paid Members Share Posted January 30, 2021 I spent much of yesterday reading about this and trying to understand it all and get my head round it. It's already been mentioned, but Robinhood really is a truly ironic name for a company involved in all of this. From what I can gather, when naming it, they must have all read the fable backwards. Financial markets have never been something I've been remotely interested in so it took some effort to make sense of it all but it's always pleasant to see the elites get thoroughly humiliated. Quote Link to comment Share on other sites More sharing options...
Paid Members stumobir Posted January 30, 2021 Paid Members Share Posted January 30, 2021 Â Quote Link to comment Share on other sites More sharing options...
Moderators neil Posted January 30, 2021 Moderators Share Posted January 30, 2021 13 hours ago, Hannibal Scorch said: Yes. But some stocks have been automatically sold by Robinhood (which is like Trading 212) to protect people from losing money. Or to allow the hedge funds who have to buy them next week a chance to do so without going bankrupt. A court case has already been filed over it From what I read this happened to anyone who purchased on margin and RH changed the margin rules leading to them covering it by automatically closing your position. While shitty, that isn't against any law and is in the terms & conditions for any place where you buy on margin. Quote Link to comment Share on other sites More sharing options...
Paid Members Hannibal Scorch Posted January 30, 2021 Paid Members Share Posted January 30, 2021 15 hours ago, SpiritOfTheForest said: I spent much of yesterday reading about this and trying to understand it all and get my head round it. It's already been mentioned, but Robinhood really is a truly ironic name for a company involved in all of this. From what I can gather, when naming it, they must have all read the fable backwards. Financial markets have never been something I've been remotely interested in so it took some effort to make sense of it all but it's always pleasant to see the elites get thoroughly humiliated. I found this explained it well Quote Link to comment Share on other sites More sharing options...
Mr_Danger Posted January 30, 2021 Share Posted January 30, 2021 Where’s that from? I can’t find anything online about a hedge fund losing more than its total value only that they’ve lost a shit load. Is there a time limit attached to the hedge funds buying the stock back? Surely a bricks and mortar game retailer isn’t long for this world especially as right before the pandemic they were about to relaunch a bunch of stores as experience based where people would meet and gather for game events and such like. Quote Link to comment Share on other sites More sharing options...
Moderators neil Posted January 30, 2021 Moderators Share Posted January 30, 2021 That explanation misses something important that I've seen glossed over numerous times now. It wasn't purely an action of nerds on wallstreetbets buying that caused the price to go up - yes that does influence a stock to go up when there is more demand to buy than there is to sell (remember that even when a stock price falls there is still someone buying it). What wallstreetbets noticed is that there was a huge amount of short interest, meaning more people had borrowed the shares than actually existed, and in addition the bulk of the owned stock was by institutional investors (i.e. index funds used for retirement etc) and then retail investors (you). The stock clearing houses have a legal responsibility to actually possess a certain amount of these stocks so as not to get fucked. Insitutional investors aren't inclined to sell because of the nature of their business, so therefore the majority of shares that the clearing houses needed to buy come from retail. Urgo, wallstreetbets says "hold your shares", because the clearing houses have to start offering higher and higher bids to get people to sell. That in turn makes some of those holding short to get nervous and want to start to cover, therefore also driving the price up more and more. The enemy of someone holding short is other short sellers who start to cover! My overall point being that the group at wallstreetbets doesn't have the level of cash to just buy buy buy and drive the price up. It was their inaction of putting pressure on by stubbornly refusing to sell and identifying that there was a perfect storm coming due to there being waaaaayyy too much short interest. Quote Link to comment Share on other sites More sharing options...
Paid Members Your Fight Site Posted January 31, 2021 Paid Members Share Posted January 31, 2021 How is it possible to “borrow” more stock than exists, though? Surely any layperson can see that’s not… feasible. Quote Link to comment Share on other sites More sharing options...
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