Join the financial revolution

Helioform

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Joined
Oct 2, 2017
Messages
3,195
The Reddit forum is back, I guess.

These people are no different than some big hedge fund investing top dollar into a company. Like Warren Buffet could decide to buy stocks in some company, and that companies price will go up. There's nothing wrong with that; that's literally how the stock market is supposed to work.
The Discord is what was taken down. The reddit was supposedly made private but I was able to get into it.

What they are doing is nothing more than a "pump and dump" scheme which might enrich a few but might ruin a lot if the stock is not sold at the right time.

Sure they've screwed some hedge funds but I would not be surprised if they get bailed out. The stock market is like a casino for the rich, if you are not part of the club, then expect to be escorted out by security if you are caught beating the house with a stratagem.
 

Aero

Superstar
Joined
Mar 13, 2017
Messages
5,910
The Discord is what was taken down. The reddit was supposedly made private but I was able to get into it.

What they are doing is nothing more than a "pump and dump" scheme which might enrich a few but might ruin a lot if the stock is not sold at the right time.

Sure they've screwed some hedge funds but I would not be surprised if they get bailed out. The stock market is like a casino for the rich, if you are not part of the club, then expect to be escorted out by security if you are caught beating the house with a stratagem.
Yeah, ultimately, everyone can't win that game. In other words, it's not going to change the world. One could argue it feeds off the same corruption. I think the people involved are well-intentioned. Like the main character from that movie "The Platform." It's not their fault they live in a verticle self-management center.

The difference is, in the movie, any scrub that survives the lower levels gets some time at the top. In the real world, the majority are on the lower levels, and they are already eating people. So eating a few geeky short sellers really ain't much of a flex. I suppose we are talking about people who don't really flex, though.

All this social media hype could grow, and new people entering the markets is an overall gain for the economy. It could transform, and start better conversations. Right now, it's not even putting a band-aid on a bullet wound. It's more like, trying to heal the gunshot by eating the wound.
 

A Freeman

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Joined
Nov 11, 2019
Messages
6,725
Excerpt from: https://www.rt.com/op-ed/513839-gamestop-reddit-wallstreet-panic/

Hedge fund managers have already taken to the airwaves to call on a Securities and Exchange Commission (SEC) investigation, and the Biden administration is "monitoring the situation." The GME rally even drew calls for investigation from Michael Burry, the famed investor who helped launch a retail-investor frenzy in 2019 by investing in none other than GameStop. All of them seem to think that the situation was anti-competitive stock manipulation, which would be extremely difficult to prove since, among other things, Melvin knew what Redditors were doing and stayed firm on their short position.

Elite investors and their foot soldiers in Washington are obviously mad about what’s going on and the most likely outcome here is that new legislation or executive action will go through to shut regular people out of trading in some way or another. It’s hard to say right now what might take shape.

In the interim, some in the media are painting this situation in stark political turns. In a column posted on January 27, CNN’s Chris Cillizza blamed the GME rally on Trumpism, which is a lazy analysis that seems similar to the same liberal smugness that assumes anyone who plays video games is a Trump fanatic – and also dismisses that a lot of the online left supports these Redditors in their Wall Street infiltration.

It’s hardly a political issue in the sense of left versus right, but rather ordinary people on the internet versus hedge funds. In my view, however, the real worrisome part here is that these Redditors are juicing certain stocks based on nothing – certainly not valuation – and only out of pure spite against large investment firms.

While that might be a noble thing to do it exposes the utter absurdity of the stock market, the problem the US financial market has with valuations and why I believe there will be an epic financial disaster soon (I have discussed this topic here, here and here). The GameStop debacle shows exactly how foundationless the financial market really is at a time when Wall Street’s performance looks deceitfully rosy.
 

Hermes

Rookie
Joined
May 8, 2017
Messages
63
The Discord is what was taken down. The reddit was supposedly made private but I was able to get into it.

What they are doing is nothing more than a "pump and dump" scheme which might enrich a few but might ruin a lot if the stock is not sold at the right time.

Sure they've screwed some hedge funds but I would not be surprised if they get bailed out. The stock market is like a casino for the rich, if you are not part of the club, then expect to be escorted out by security if you are caught beating the house with a stratagem.
You're probably not entirely wrong about this because the shouting for regulations is coming from MSM. The SEC or government will step in and find a way to shut the little guys out. I know TD Ameritrade has already stopped retail investors from buying GME.

Still doesn't change the fact that they caused noise and did something ages ago would not be possible for retail investors. Pump and dump schemes were generally always the product of people who understood the markets. Hedge funds themselves run pump and dump schemes all the time. If you ever frequent stockhouse you can see millions of stocks where random user pump the stock with whatever bs only to hope it would be driven up for a sale. There's no doubt that billion dollar hedge funds play a role in this type of activity online.

The point here is that this was coordinated by retail investors not for the necessary purpose to get rich but to give a big F you to the hedge funds that think retail investors don't understand how they fuck with the markets. They coordinated this well.

Read this post from a reddit or on wsb

To Melvin Capital: you stand for everything that I hated during that time. You're a firm who makes money off of exploiting a company and manipulating markets and media to your advantage. Your continued existence is a sharp reminder that the ones in charge of so much hardship during the '08 crisis were not punished. And your blatant disregard for the law, made obvious months ago through your (for the Melvin lawyers out there: alleged) illegal naked short selling and more recently your obscene market manipulation after hours shows that you haven't learned a single thing since '08. And why would you? Your ilk were bailed out and rewarded for terrible and illegal financial decisions that negatively changed the lives of millions. I bought shares a few days ago. I dumped my savings into GME, paid my rent for this month with my credit card, and dumped my rent money into more GME (which for the people here at WSB, I would not recommend). And I'm holding. This is personal for me, and millions of others. You can drop the price of GME after hours $120, I'm not going anywhere. You can pay for thousands of reddit bots, I'm holding. You can get every mainstream media outlet to demonize us, I don't care. I'm making this as painful as I can for you.

To CNBC: you must realize your short term gains through promoting institutions' agenda is just that - short term. Your staple audience will soon become too old to care, and the millions of us, not just at WSB but every person affected by the '08 crash that's now paying attention to GME, are going to remember how you stuck up for the firms that ruined so many of us, and tried to tear down the little guys. I know for sure I'll remember this. In response, here is a list of CNBC sponsors and partners. They include, but are not limited to, IBM, Cisco, TMobile, JPMorgan, Oracle, and ZipRecruiter. Their parent company is NBCUniversal, owned by Comcast and G
For a lot of people doing this it's not about making money, it's all about screwing over the hedge funds.
 

Hermes

Rookie
Joined
May 8, 2017
Messages
63
Excerpt from: https://www.rt.com/op-ed/513839-gamestop-reddit-wallstreet-panic/

Hedge fund managers have already taken to the airwaves to call on a Securities and Exchange Commission (SEC) investigation, and the Biden administration is "monitoring the situation." The GME rally even drew calls for investigation from Michael Burry, the famed investor who helped launch a retail-investor frenzy in 2019 by investing in none other than GameStop. All of them seem to think that the situation was anti-competitive stock manipulation, which would be extremely difficult to prove since, among other things, Melvin knew what Redditors were doing and stayed firm on their short position.

Elite investors and their foot soldiers in Washington are obviously mad about what’s going on and the most likely outcome here is that new legislation or executive action will go through to shut regular people out of trading in some way or another. It’s hard to say right now what might take shape.

In the interim, some in the media are painting this situation in stark political turns. In a column posted on January 27, CNN’s Chris Cillizza blamed the GME rally on Trumpism, which is a lazy analysis that seems similar to the same liberal smugness that assumes anyone who plays video games is a Trump fanatic – and also dismisses that a lot of the online left supports these Redditors in their Wall Street infiltration.

It’s hardly a political issue in the sense of left versus right, but rather ordinary people on the internet versus hedge funds. In my view, however, the real worrisome part here is that these Redditors are juicing certain stocks based on nothing – certainly not valuation – and only out of pure spite against large investment firms.

While that might be a noble thing to do it exposes the utter absurdity of the stock market, the problem the US financial market has with valuations and why I believe there will be an epic financial disaster soon (I have discussed this topic here, here and here). The GameStop debacle shows exactly how foundationless the financial market really is at a time when Wall Street’s performance looks deceitfully rosy.
I think anyone making this out to be a left vs right thing is definitely not seeing that this is a class thing more than anything else.

I agree with the fact that they're doing this to stocks that now have been driven up in valuation unnecessarily and those valuations make no sense. Gamestop which sells physical disc games is a dying company due to the emergence of digital game downloads and cloud based streaming staring to heat up. The ps5 was a hot commodity since release but if you watched that you would notice the version of the ps5 that was generally sold out the quickest was the digital version. Gamestop is sort of like blockbuster nearing it's final days as new better methods begin to emerge to access games. So I agree the valuation makes no sense.

But they targeted some of these companies primarily because the short interest % was high. I know Gamestop was above 100%. A lot of this is attributed to the practice of naked short selling.

But I will agree the current bull run in the market in the midst of a pandemic makes absolutely no sense and part of this could be due to the influx of retail traders that are now dabbling in the markets due to not having jobs. A lot of valuations are not based on foundations but this could be because there are more day and swing traders focused on changes in chart technicals over shorter periods of time rather than fundamentals (ie what is in the balance sheet/financial statements).
 
Joined
Apr 12, 2017
Messages
2,024
Redditors trolling capitalism and beating them at their own game is hilarious and so so delicious! The implication is that as long as they all stick together and hold stocks long enough, they can bleed the shorts with pure hype alone every single time. Amazing really.

Watching the media’s reaction is very telling. Oops, it turns out that value-driven markets are just a sham and the flow of capital is all that really counts. Many smart people have been telling us that something like this could easily happen for years only to fall on deaf ears. It’s amazing that it has finally been substantiated.
 

The Zone

Star
Joined
Mar 13, 2017
Messages
3,165
And this is a prime example of what can happen when people on both sides of the divide come together to goad the man. Can they turn this into a psyop? Perhaps this is planned to set forth new regulations (great reset) on stocks. I like to think outside the box.

Anyhow, this may help explain what is happening better to some.
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Last edited:

Cintra

Star
Joined
Jan 11, 2020
Messages
3,224
And this is a prime example of what can happen when people on both sides of the divide come together to goad the man. Can they turn this into a psyop? Perhaps this is planned to set forth new regulations (great reset) on stocks. I like to think outside the box.

Anyhow, this may help explain what is happening better to some.
View attachment 51340
It explains it very well. Thanks.
 
Joined
Apr 13, 2017
Messages
4,423

Aero

Superstar
Joined
Mar 13, 2017
Messages
5,910
The Robinhood platform has been sketchy for a while now. Apparently, they don't even make their own trades. Robinhood pays another company to make all the trades. Correct me if I'm wrong, but that's like if the King of England had "Robinhood" by the balls the whole time.

They don't steal from the rich. They pay the rich. And by they pay, I mean RobinHood customers pay.
 
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